Iberdrola transfers its smart meter operations in the UK to a different entity
Iberdrola Offloads UK Smart Metering Business in a whopping €1.06 Billion Deal
In a move to streamline its asset portfolio and fuel strategic growth, Spanish multinational Iberdrola has agreed to sell its UK smart metering business, SP Smart Meter Assets Limited (SPSMAL), to the global financial services powerhouse Macquarie for approximately £900 million (around €1,060 million). This blockbuster sale ranks as the second largest divestment in Iberdrola's history, surpassed only by the 2024 disposal of combined cycle plants in Mexico [1][2][3].
Who's Who on the Deals Table
The transaction sees Macquarie, a global powerhouse in financial services, acquire the smart metering business from Iberdrola, who, through its subsidiary SPSMAL, currently manages 2.7 million meters in the UK [2].
Price Tag and Logistics
The deal values SPSMAL at an estimated £900 million (around €1,060 million) [1]. Pending approval from the UK's competition authority, the transaction is slated for completion in the third quarter of 2025 [2].
Why Is This Happening?
Iberdrola's decision to sell off SPSMAL aligns with its strategy to dispose of non-strategic assets and boost growth while maintaining financial might [2].
Macquarie's Standing in the UK Metering Market
With this acquisition, Macquarie, already a significant player in the UK metering market, will manage more than 10 million meters, including 7.5 million smart meters. The company has contributed substantial funding to support the UK's smart meter rollout, which has seen 38 million smart meters installed by the end of 2024 [2].
In parting with its UK smart metering business, Iberdrola hopes to create an optimized asset portfolio while continuing its strategic growth endeavors.
Footnotes:
[1]: Sources confirm a valuation of approximately £900 million (around €1,060 million) for the sale.
[2]: The sale is expected to be completed in the third quarter of 2025, pending approval from the UK's competition authority.
[3]: This divestment by Iberdrola marks the second largest in the company's history.
What will Macquarie manage more than, after acquiring Iberdrola's UK smart metering business?The smart metering business of Iberdrola is being sold to Macquarie for an estimated £900 million (around €1,060 million).Pending approval from the UK's competition authority, the deal will value SPSMAL at this amount.Macquarie's acquisition of Iberdrola's UK smart metering business is part of its strategy to contribute substantial funding to support the UK's smart meter rollout.
