Iberduero

Iberduero was a Spanish electricity utility headquartered in Bilbao and active from 1944 until its legal absorption into Iberdrola in 1992. The company was created when Hidroeléctrica Ibérica absorbed Saltos del Duero, combining an established northern Spanish hydroelectric business with the company responsible for exploiting the Douro River and its border region. Its formation placed Iberduero among the principal electricity producers and distributors in Spain during the post-war expansion of the national power system. The company's industrial base was centered on hydroelectric generation. Over time, Iberduero developed a large network of more than 100 hydroelectric plants, especially along the Douro and its tributaries. Important installations associated with its system included Aldeadávila, Saucelle, Almendra, Castro, Ricobayo and Villalcampo. These facilities gave the company a strong position in electricity generation and helped it serve a broad area of northern and western Spain. By 1970, Iberduero and its subsidiaries accounted for approximately 27 percent of electricity consumed in Spain, according to the referenced historical account. Iberduero also diversified its generation portfolio. During the 1960s it expanded or commissioned thermal facilities at Burceña, Pasajes and Santurce, and it participated in the Velilla thermal plant through Terminor, a joint venture with Electra de Viesgo. In nuclear power, Iberduero and Electra de Viesgo established Nuclenor in 1957 on an equal basis. Nuclenor later operated the Garoña nuclear plant, which began operation in 1971. Iberduero additionally pursued the Lemóniz nuclear project, construction of which was halted in 1982 after the site became a target of ETA attacks. By the mid-1980s, the company also held majority interests in the Almaraz and Trillo nuclear plants. The company operated through a substantial group of subsidiaries and associated businesses, including regional electricity companies such as Electra de Burgos, Electra de Extremadura, Electra Popular Vallisoletana, Electra de Salamanca, Electra de Soria, Electra de Logroño, Fuerzas Eléctricas de Navarra and Vitoriana de Electricidad. It also participated in Nuclenor and Terminor. This structure reflected the fragmented but increasingly integrated nature of Spain's electricity industry in the second half of the twentieth century. In 1990 Iberduero began discussions with Hidroeléctrica Española, commonly known as Hidrola, one of its principal competitors. The proposed combination was intended to create a stronger counterweight to Endesa's position in the Spanish electricity market. An agreement was reached on 1 May 1991, and Iberduero pursued the integration through a takeover bid. The merger was legally completed on 12 December 1992. The resulting company was named Iberdrola, combining the names of Iberduero and Hidrola, and absorbed several subsidiaries of the two predecessor groups. Iberduero therefore survives as a major historical predecessor of Iberdrola rather than as an independent operating brand.

Iberduero's institutional roots lay in Hidroeléctrica Ibérica, founded in Bilbao on 19 July 1901 by engineer Juan Urrutia Zulueta with capital provided by BBVA. Hidroeléctrica Ibérica initially focused on exploiting waterfalls and developing hydroelectric facilities in northern Spain, particularly within the Ebro basin. Its early growth reflected the importance of regional hydraulic resources in the formation of Spain's electricity industry. Saltos del Duero was established in 1918 to develop the Douro River in the section bordering Portugal. On 30 September 1944, Hidroeléctrica Ibérica absorbed Saltos del Duero, creating Iberduero. The new company combined Hidroeléctrica Ibérica's northern network and institutional base with Saltos del Duero's large river-development ambitions. It subsequently became one of Spain's leading electricity companies, producing and distributing power through its own facilities, subsidiaries and associated enterprises. Hydroelectric generation remained the foundation of Iberduero's industrial strategy. The company developed more than 100 hydroelectric plants, with a particularly important concentration on the Douro and its tributaries. The associated system included the Aldeadávila, Saucelle, Almendra, Castro, Ricobayo and Villalcampo dams and power stations. By 1970 Iberduero and its subsidiaries generated about 27 percent of the electricity consumed in Spain, illustrating the scale reached by the group during the country's industrial expansion. From the 1960s, Iberduero added thermal capacity. It expanded the Burceña plant in Barakaldo in 1965, commissioned the Pasajes thermal plant in 1968 and the Santurce plant in 1969. Through Terminor, a joint venture equally owned with Electra de Viesgo, it had also participated in the Velilla plant, which began operating in 1964. Iberduero acquired Electra de Viesgo's share in Terminor in 1984 and built a second generating unit at Velilla. Nuclear power became another part of the company's generation portfolio. Iberduero and Electra de Viesgo created Nuclenor in 1957 as an equal partnership. Nuclenor carried out the construction and operation of the Garoña nuclear plant, which started in 1971. Iberduero separately undertook the Lemóniz nuclear project. The project was suspended in 1982 after ETA targeted the facility and associated personnel; the historical account records the murders of engineers José María Ryan and Ángel Pascual Múgica and three workers. In 1985 Iberduero became the sole shareholder of a 53 percent interest in Almaraz and a 51 percent interest in Trillo. The company's regional reach was supported by subsidiaries including Electra Aguera, Electra de Burgos, Electra de Extremadura, Electra Popular Vallisoletana, Electra de Salamanca, Electra de Soria, Electra de Logroño, Compañía Eléctrica del Urumea, Fuerzas Eléctricas de Navarra, El Irati, León Industrial, Vitoriana de Electricidad and Saltos del Sil. Its joint ventures and investments in generation broadened the group beyond its original hydroelectric base. By the early 1990s, Spain's electricity market was undergoing consolidation. Iberduero and Hidroeléctrica Española, one of its main competitors, began negotiations in 1990. Their proposed combination was intended to create a larger group capable of balancing Endesa's substantial market presence. The final agreement was reached on 1 May 1991, with Iberduero making a takeover bid as the legal mechanism for integration. On 12 December 1992 the resulting company was incorporated under the name Iberdrola. The transaction also absorbed a number of subsidiaries from both groups, including Eléctrica de Langreo, Electra de Logroño, Vitoriana de Electricidad, Fuerzas Eléctricas de Navarra, Compañía Eléctrica del Urumea, Centrales Térmicas del Norte and Edificaciones Iberoamericanas. Iberduero consequently became a predecessor company of Iberdrola and ceased to operate as an independent corporate entity.

• 1992

  Iberdrola is incorporated

  [1]Iberdueroen.wikipedia.org

  The merger was legally completed on 12 December, creating Iberdrola and ending Iberduero's independent corporate life.

• 1991

  Merger agreement with Hidroeléctrica Española

  [1]Iberdueroen.wikipedia.org

  The companies reached their final integration agreement on 1 May.

• 1985

  Iberduero holds majority nuclear interests

  [1]Iberdueroen.wikipedia.org

  Iberduero became the sole shareholder of its 53 percent Almaraz interest and 51 percent Trillo interest.

• 1984

  Iberduero takes full control of Terminor

  [1]Iberdueroen.wikipedia.org

  The company acquired Electra de Viesgo's share in Terminor and built a second unit at Velilla.

• 1971

  Garoña nuclear plant begins operation

  [1]Iberdueroen.wikipedia.org

  The Nuclenor-operated Garoña plant entered service.

• 1970

  Iberduero reaches major national scale

  [1]Iberdueroen.wikipedia.org

  Iberduero and its subsidiaries produced approximately 27 percent of electricity consumed in Spain.

• 1957

  Nuclenor is established

  [1]Iberdueroen.wikipedia.org

  Iberduero and Electra de Viesgo formed Nuclenor as an equal joint venture for nuclear generation.

• 1944

  Iberduero is created

  [1]Iberdueroen.wikipedia.org

  Hidroeléctrica Ibérica absorbed Saltos del Duero on 30 September, forming Iberduero.

• 1918

  Saltos del Duero is founded

  [1]Iberdueroen.wikipedia.org

  Saltos del Duero was established to develop hydroelectric resources along the Douro River near the Portuguese border.

• 1901

  Hidroeléctrica Ibérica is founded

  [1]Iberdueroen.wikipedia.org

  The Bilbao-based predecessor was founded on 19 July 1901 by engineer Juan Urrutia Zulueta with BBVA-provided capital.

A major Spanish integrated electricity utility built around hydroelectric generation, with additional thermal and nuclear interests.

• Electricity generation · 1944

  Hydroelectric generation

  Hydropower was Iberduero's core business. The company developed a network of more than 100 plants, with major installations on the Douro and its tributaries, including Aldeadávila, Saucelle, Almendra, Castro, Ricobayo and Villalcampo. These facilities formed the industrial and geographic foundation of the company's position in Spain's electricity sector.

• Electricity generation · 1965

  Thermal generation

  Iberduero expanded into thermal electricity during the 1960s. Its activities included the Burceña expansion in Barakaldo, the Pasajes plant, the Santurce plant and participation in Velilla through Terminor. After acquiring Electra de Viesgo's Terminor interest in 1984, Iberduero added a second Velilla generating unit.

• Nuclear electricity · 1957

  Nuclear generation interests

  The company participated in nuclear generation through Nuclenor, its equal partnership with Electra de Viesgo, which operated Garoña from 1971. Iberduero also pursued Lemóniz and held majority interests in Almaraz and Trillo by 1985. Its nuclear portfolio was therefore significant, although some projects were affected by security and political opposition.

• 1991

  Pursuit of Hidroeléctrica Española integrationM&A

  Background

  Iberduero and Hidroeléctrica Española sought to combine their positions in a consolidating Spanish electricity market and create a larger counterweight to Endesa.

  Action taken

  Iberduero presented a takeover bid under the agreement reached on 1 May 1991, using the transaction to integrate the two groups.

  Aftermath

  The merger was legally completed in December 1992 and produced Iberdrola, which absorbed selected subsidiaries of both companies.

  Source

1. 1Iberdueroen.wikipedia.org