Nov 23, 2000, (Expansion /FT World Media Abstracts via COMTEX) Spanish electricity network Red Electrica de Espana (REE) hopes to acquire the electricity transport lines operated in Spain by Spanish energy giants Endesa SA and Iberdrola SA.
REE chairman Pedro Mielgo believes that the merger of Endesa and Iberdrola offers “an ideal opportunity to complete the design of the Spanish electricity system.”
REE, which manages Spain’s electricity distribution network, only controls 60 per cent of the high-tension infrastructure. The rest is controlled by Spanish energy companies Endesa, Iberdrola, Union Fenosa SA and Hidroelectrica del Cantabrico SA (Hidrocantabrico). Mielgo affirmed that “the purchase of the high-tension lines that Endesa and Iberdrola currently control will enable us to control the entire Spanish network, increase efficiency levels and offer lower costs to consumers”.
Combining the 12,000km network controlled by Endesa and Iberdrola with the 18,000km controlled by REE will create the world’s biggest independent electricity network. REE is prepared to launch a capital increase to finance the acquisition, which sector sources have valued at 900 million euros (Pta150bn). REE, which has also invested in the telecommunications sector, plans to invest 600 million euros in developing its current network in Spain over the next five years.
Copyright 2000: Financial Times Information, Dow Jones, Dialog