Cox Secures €3.6 Billion to Close Iberdrola Deal

Cox's €3.6 billion acquisition of Iberdrola Mexico, backed by Goldman Sachs and a seven-bank syndicate, positions the Spanish utility as a dominant player in Mexico's energy market with over 2.6GW of installed capacity across 15 generation plants. The transaction occurs  under the deployment of Plan México, which balances the CFE's mandated 54% generation share with opportunities for private investment in regulated and contracted assets. Cox plans to invest an additional US$6 billion in Mexico through 2030, representing over half of its global commitments.

Spanish energy company Cox, secured financing to acquire Iberdrola’s Mexico business in a €3.6 billion (US$4.2 billion) deal backed by Goldman Sachs, positioning the Valencia-based firm as a major player in Mexico’s electricity market. The acquisition includes more than 2.6GW of installed capacity across several generation plants and will integrate Iberdrola Mexico’s employees to maintain operations and support growth.

The Wall Street investment bank will participate as both a lender and managing partner in the project. Goldman Sachs will contribute €200 million US$() in equity capital in addition to the syndicated loan it already led with other financial institutions. In late January, Cox announced it had secured US$2.65 billion in financing for the acquisition. Seven financial institutions participated in providing the resources: US-based Citi and Goldman Sachs, European firms Barclays and Deutsche Bank, Spanish banks Santander and BBVA, and Bank of Nova Scotia from Canada.

Last year, Iberdrola announced its withdrawal from the Mexican market to concentrate efforts in the United States and UK, creating space for new players.

According to Iberdrola Mexico, it counts with capacity exceeding 2.6GW across 15 generation plants, including six wind farms, three photovoltaic parks, and six cogeneration and combined-cycle plants, with presence in 12 states.

"This transaction is transformational for the Company, elevating Cox to a new level in terms of size and strategic positioning, and consolidating it as an integrated utility with solid and recognized leadership in the Mexican electricity market," said Enrique Riquelme, Cox Executive Chairman. In January, the company confirmed it will absorb Iberdrola Mexico’s staff of about 700, safeguarding expertise, sustaining uninterrupted operations, and enabling faster expansion across its Mexican operations.

Expansion Strategy

The acquisition aligns with Cox’s broader expansion strategy, supported by strong financial performance in 2025. The company reported net profit of €69 million (US$81.3 million), with revenue increasing 62% year over year to €1.14 billion. EBITDA rose 23% to €225 million, representing a margin of 20%, while net income increased 16% compared to 2024. Operating cash flow reached €127 million, with a cash conversion ratio of 56%. 

Cox attributed its performance to its dual operating model. Its Asset Co. division focuses on long-term infrastructure investments with stable returns, while its Service Co. division delivers engineering, transmission, and operational services. Both segments contributed to revenue growth and improved margins, supporting the company’s expansion into new markets.

Mexico plays a central role in Cox’s long-term strategy. The country is one of six priority regions, alongside Central America, Brazil, Chile, Spain, and Africa–Middle East. According to the company, Mexico accounts for more than 50% of its global investment commitments, reflecting its importance as a growth market.

Cox plans to invest an additional US$6 billion in Mexico through 2030, targeting both electricity generation and water infrastructure projects. The company sees opportunities to expand under a regulatory framework that combines state-led planning with private sector participation.

Riquelme pointed to Mexico’s “Plan México” as a framework that supports long-term corporate investment. Despite the 2025 energy reform requiring CFE to maintain a 54% share of national power generation, Cox views the current legal environment as providing sufficient certainty for private investment and long-term project development.

Beyond Mexico, Cox continued to expand its international footprint in 2025 through a series of targeted investments. These include the acquisition of two solar plants in Panama with a combined capacity of 24MW, the expansion of the Agadir desalination complex in Morocco to 400,000m3 per day of water capacity and 150MW of wind power, a new water concession in Angola, and additional solar, storage, and transmission projects in Ecuador and Brazil.

These projects support Cox’s positioning as an integrated water and energy utility with a diversified geographic presence. The company said its investment strategy focuses on assets that generate predictable cash flow and align with long-term infrastructure demand.