The law firm King & Wood Mallesons ("KWM") has advised the Portuguese energy company EDP on the agreement reached with the Australian fund Macquarie Infrastructure and Real Assets (Europe) Limited ("Macquarie") for the integration of its electricity distribution businesses in Spain: Viesgo Distribución and Begasa, both owned by Macquarie, and E-Networks, owned by EDP. In this company, EDP will have a 75.1% stake and Macquarie the 24.9%. The company will have 50,000 kilometres of networks and 1.3 million supply points.
In addition to the strategic alliance in the electricity distribution business, the operation also includes the acquisition by EDP Renováveis of the 100% of Viesgo’s renewables business in Spain and Portugal and, on the other hand, the acquisition by EDP of two thermal generation plants in Spain.
This transaction, the biggest one made by EDP outside Portugal following the takeover bid for Hidroeléctrica del Cantábrico in 2001, amounts to €2.7 billion. Roberto Pomares, M&A partner at KWM and coordinator of the advice to EDP, says that “this transaction is crucial in the current energy scenario in Spain and also for the strategic plan of EDP, as the company significantly strengthens its presence in Spain and its position at the forefront of the Energy transition. We are really proud that EDP has once again trusted King & Wood Mallesons with this transaction”.
In addition to Roberto Pomares, other of the key lawyers in this deal has been Gonzalo Fernández, senior associate at the M&A team in KWM. The multidisciplinary team of the firm also includes partners Gonzalo Olivera (energy); Carlos Gil (employment), senior associates Fernando Jiménez (tax); Sandra de Andrés (employment), María Redondo (Finance) and Alberto Artés (energy) and the associates Enrique Murillo (M&A) and Oscar Fuertes (tax).
The transaction is now subjected to the corresponding regulatory authorizations and its final close is expected by the end of the year.