Drax closes GBP-702m acquisition of Scottish Power portfolio

Drax power plant. Author: Gareth Davies. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

January 2 (Renewables Now) - Drax Group Plc (LON:DRX) said today it has completed the acquisition of the 2,566-MW UK traditional generation portfolio of Iberdrola-owned Scottish Power Ltd for GBP 702 million (USD 891m/EUR 779m) in cash.

The transaction includes Scottish Power Generation Group and its fully-owned unit SMW. In terms of generation sources, it concerns four combined cycle gas turbine (CCGT) plants, a 440-MW pumped storage hydro facility and two run-of-river hydro stations. The deal also covers the Daldowie biomass-from-waste facility.

ScottishPower, part of Spanish electric utility Iberdrola SA (BME:IBE), agreed in mid-October to sell its traditional generation assets to Drax in order to focus solely on wind power. The two parties had to renegotiate the terms of the deal and add a risk-sharing mechanism to it after the suspension of the capacity market scheme in the UK.

(GBP 1.0 = USD 1.269/EUR 1.110)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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