Iberdrola Strikes £900 Million Deal with Macquarie to Offload UK Smart-Meter Arm

Image Credit: Iberdrola

Iberdrola has just sealed a significant deal with Macquarie, the Australian global financial powerhouse. The company agrees to sell its entire stake in SP Smart Meter Assets Limited (SPSMAL), a transaction valued at an eye-watering £900 million (or €1.06 billion at current exchange rates).

Subject to approval from the UK’s competition authority, the deal is set to close by the third quarter of 2025, marking a key milestone in Iberdrola’s strategic portfolio reshuffle.

Currently based in the UK, SPSMAL oversees 2.7 million meters, making it a critical player in the region’s energy infrastructure.

Macquarie, already one of the UK's leading independent electricity meter providers, is no stranger to this sector. Since its inception in 2003, the firm has expanded its meter business to manage a staggering 10 million meters across Great Britain. This includes 7.5 million smart meters and 2.5 million traditional meters, alongside an impressive £1.5 billion funding contribution towards the UK’s smart meter rollout.

As of late 2024, the Smart Meter Rollout Programme, led by Ofgem, has resulted in 38 million smart meters being installed in British homes and small businesses.

This sale aligns with Iberdrola’s ongoing strategy to streamline its portfolio by divesting non-strategic assets. Notably, the transaction is part of Iberdrola’s broader commitment outlined in its Strategic Plan 2024/2026, which has already seen the company surpass €10 billion in divestments and alliances.

This marks Iberdrola’s second-largest divestment ever, following the sale of its combined cycle plants in Mexico in 2024. The company’s alliance-driven approach underscores its commitment to accelerating growth and championing the electrification of the economy, all while reinforcing its robust financial foundation.