Iberdrola transfers its smart meter operations in the UK to a different entity
Rewritten Article:
Iberdrola, a Spanish multinational, has announced its upcoming second largest divestment ever – the sale of its UK smart meter business, SP Smart Meters Assets Limited (SPSMAL), to Macquarie UK Holdings No.2 Limited. Valued at approximately €1.06 billion, this transaction is part of Iberdrola’s strategic plan to offload non-core assets, helping fund growth, drive the clean energy transition, and maintain financial robustness.
This smart metering subsidiary, managing around 2.7 million meters across the UK, bolsters Macquarie's position as one of the largest independent electricity meter suppliers in the UK. Macquarie, an Australian global financial services group, manages over 10 million meters, including 7.5 million smart meters, and has invested heavily in the UK’s Smart Meter Rollout Programme since 2003.
Iberdrola's move reflects a broader initiative of alliances and divestments, having already surpassed €10 billion in proceeds with this sale following the previous largest divestment in company history: the sale of combined-cycle gas plants in Mexico in 2024. Macquarie’s acquisition of SPSMAL’s portfolio significantly strengthens its leadership position in the UK smart meter market.
By offloading this asset, Iberdrola aims to focus on its core business and boost its financial capacity for clean energy projects. This disposal strategy helps the company optimize its portfolio and pursue its 2024–2026 Strategic Plan goals, which prioritize clean energy transition acceleration.
For Macquarie, acquiring SPSMAL expands its portfolio by a hefty margin, boosting its market share and enabling further support for the UK’s smart meter rollout – a key regulatory and energy efficiency initiative led by Ofgem. This initiative had installed over 38 million smart meters by the end of 2024.
The transaction is subject to approval by the UK Competition and Markets Authority and is expected to close in the third quarter of 2025. This divestment marks ongoing consolidation and investment in the UK smart metering market, a critical player in energy management and decarbonization efforts.
What sector will Macquarie's financial resources be directed towards after the acquisition of SPSMAL from Iberdrola? – The energy industry
What question could Iberdrola potentially be asked about its strategic plan to offload non-core assets, given their double-digit billion Euro divestment proceeds? – What other areas of the finance industry might they consider for future divestments?
