Speaking from Strasbourg, Mr Smith said:

"I am disappointed with the Commission's decision. It has been acknowledged that there is a tax break and that Iberdrola may benefit from it, but the Commission does not consider that enough to warrant further investigation.  

"What is clear is that this deal would never have received the scrutiny it has without the SNP's complaint.  

"It is unfortunate that Scottish companies are uniquely open to take over as we lack the powers used by other countries to grow our businesses.  Instead our companies and employees find themselves looking for the least worst takeover option."

SNP Depute Leader Nicola Sturgeon MSP said:

"The SNP will continue to stand up for Scotland and fight to protect Scottish interests to ensure the best possible deal for Scottish Power employees and customers.

"Alex Salmond and I met with the President of Iberdrola last week where we received further assurances on jobs and the retention of corporate HQ functions in Glasgow.  

"We will continue to maintain a constructive dialogue with Iberdrola as the takeover proceeds."