Iberdrola Sells Mexican Assets for US$4.2 Billion

Iberdrola has reached an agreement to sell its businesses in Mexico for approximately US$4.2 billion. The transaction aligns with the company's planned €55 billion (US$62.8 billion) investment in its electricity transmission and distribution networks, primarily in the United States and the United Kingdom.

The sale includes 15 power plants with a combined capacity of 2.6GW, the commercial activities, and the portfolio of generation projects under development. The operational capacity comprises 1,368MW from combined cycle and cogeneration plants, and 1,232MW from wind and photovoltaic assets. The purchaser, COX ABG Group, intends to operate these assets and develop the project pipeline in line with its expansion plans in Mexico and the frameworks established by the Mexican government to promote new generation. Additional payments to Iberdrola will be made as these development projects are completed, beyond the initial US$4.2 billion agreed.

The agreement, which implies a valuation multiple of US$1.6 million per operational MW, is subject to customary approvals, including those from Mexico's National Energy Commission and National Antitrust Commission, as well as approval from the purchaser's General Shareholders Meeting. The valuation is based on Iberdrola Mexico's balance sheet as of Dec. 31, 2024. Hidrola I, S.L. (Unipersonal), a wholly-owned subsidiary of Iberdrola, S.A., entered into the sale and purchase agreement with COX ABG Group. The purchaser will pay an initial US$35 million upon signing, which will be deducted from the final price at closing.