Freshfields Bruckhaus Deringer, Allen & Overy (A&O) and Uria Menendez have all taken roles on Qatar Holding's €2.1bn (£1.8bn) investment in Spanish utility company Iberdrola.

Freshfields acted for Qatar Holdings, fielding a London team led by corporate partners Sarah Murphy and Bruce Embley alongside tax partner Jonathan Cooklin.

The magic circle firm's Spanish team was led by corporate partner Armando Albarran alongside competition partner Alvaro Iza and tax partner Miguel Loran.

Meanwhile, A&O and Uria advised Iberdrola, with City corporate partner Richard Browne, Madrid managing partner Inigo Gomez-Jordana and senior associate Annabelle Croker heading up the A&O team, while M&A partner Javier Tortuero and Madrid managing partner Rafael Sebastian led for Uria.

Browne (pictured) said: "The companies have entered into a strategic understanding that they will search to find development opportunities around the world including Qatar, so it works well for both of them.

"The sovereign wealth funds in the Middle East are big players and important in the market at the moment and they are making a number of interesting investments."

Iberdrola plans to reinforce its Doha office and convert it into a regional headquarters for the Middle East and Asia, including a centre for research and development.

A&O also acted for Iberdrola in 2006 on another high-profile deal that saw the Spanish company take over Scottish Power for £11.6bn.