Scottish Power owner Iberdrola announces big investment in US and UK

Spanish energy giant Iberdrola has carried out a fast-track increase in its share capital this week of 5 billion euros. It aims to take advantage of investment opportunities in electricity distribution grids in the United States and Britain, benefiting from new tariff and regulatory frameworks in both countries. The amount represents a 5% increase in its market capitalisation, which stood at 100 billion euros.

Iberdrola already has significant interests in the US and UK, including Britain's Scottish Power, which will benefit from the fresh investment, the company said. It marks a shift from a focus on energy generation to distribution networks.

In its half-year results, also announced on Wednesday this week, Iberdrola said it had made 3.56 billion euros profit in the first six months of the year - 20% up on last year.