More bad news for Deloitte over ScottishPower
Scottish Power backs takeover bid from Iberdrola
A decision by ScottishPower this
week to back an £11.6bn takeover offer from Spain’s second largest electricity
company Iberdrola, is likely to spell the end of
Deloitte’s recently won audit role at
ScottishPower.
A successful bid by Iberdrola would almost immediately hand the audit work
back to Ernst & Young, auditor of
Iberdrola – this
after Deloitte scored a major coup by winning the lucrative contract from PwC.
The tie-up will create Europe’s third largest utility. Scottish Power has
more than 5.2 million UK customers.
According to reports, the offer could trigger rival bids from French utility
EDF and German rival RWE, who have been watching the situation.
Further reading:
Deloitte facing loss of ScottishPower audit
Deloitte steals ScottishPower from PwC