E.ON, Germany's largest power company, is the most likely bidder for Iberdrola, Spain's second biggest energy provider, following RWE's €3bn ($2.814bn) offer for Hidroelectrica del Cantabrica, according to bankers close to the deal.

Spain's utility sector has been thrown into turmoil following the collapse of Endesa's proposed €14bn takeover of Iberdrola. The deal fell apart on Monday evening.