Morgan Stanley | Rob Pulleyn raises the scenario of the purchase of the grid company Electricity North West by Iberdrola (IBE) or Engie, as they are mentioned in press articles: Iberdrola, in the final bid for Electricity North West as potential buyers (expansion.com). Rob sees no problems in financing the operation in either of the two, at the valuation that has been put forward in the press (€4-5bn). In both cases it could mean an increase in exposure to distribution networks, bringing Engie closer to the electricity vs gas business, although Rob estimates better synergies for Iberdrola (slight increase in EPS).
Iberdrola or Engie could finance purchase of Electricity North West but better synergies expected with Iberdrola
