CVC Capital Partners, the European private equity firm, has agreed to acquire the high-voltage electricity transmission asset of Iberdrola, Spain’s second largest utility.
The E577m transaction, subject to approval of the Spanish Ministry of Finance, gives CVC ownership of 4,700km of high voltage power lines, which Iberdrola will continue to operate until 2037. The group will also keep its fibre-optic cable network.
The sale is part of a disposal programme to enable to utility to focus on power generation and distribution in Spain. It follows last week’s disposal of its water business, which was sold to RWE Thames Water for E95m.
CVC has been investing in Spanish buyouts for a number of years. Recent local investments include Grupo Zena, a multibrand food chain with over 300 outlets and Dorna, sports rights management company.