Cox ABG Group, a Spanish water and renewable energy company, has struck a deal to acquire Iberdrola’s Mexican energy assets in a transaction valued at approximately $4.2 billion, including debt obligations and minority interests
⚡ Deal Overview
- The acquisition includes a 2.6 GW capacity spread across 15 power plants—comprising six wind farms, three solar parks, and additional gas-fired and cogeneration facilities―plus an 11.8 GW development pipeline
- Shareholders representing about 84% of Cox’s voting capital have already approved the move.
- Cox plans to fund 75% through debt financing and 25% through equity, with the deal expected to close by late 2025 or early 2026.
📈 Strategic Implications
- Cox predicts the acquisition will more than double its annual revenue to around €2.7 billion and triple its EBITDA to approximately €720 million in the near term.
- The transaction powers Iberdrola’s shift in focus toward grid infrastructure investments, and aligns with its plan to invest over €55 billion through 2031 in the UK and U.S. markets.
🧭 Context & Background
- In 2023, Iberdrola offloaded roughly $6 billion in gas-fired assets in Mexico, signaling its gradual exit from the region amid regulatory and political uncertainties.
- Cox, meanwhile, had expressed interest in acquiring these assets and reportedly made a €4 billion ($4.69 billion) bid recently—plans that indicate Mexico is a key strategic expansion region for the company.
📊 Summary at a Glance
Item | Detail |
Buyer | Cox ABG Group (Spain) |
Seller | Iberdrola (Spain) |
Deal Value | ~$4.2 billion (including debt) |
Assets Included | 2.6 GW capacity — wind, solar, gas, cogeneration + 11.8 GW pipeline |
Funding Structure | 75% debt, 25% equity; closing by late 2025 / early 2026 |
Strategic Impact | Doubles revenue (€720M) |
Background | Part of Iberdrola’s shift out of Mexico; Cox expanding C&I renewables |
✅ Bottom Line
This acquisition is a major milestone for Cox, transforming it into a stronger global challenger with significantly boosted scale and earnings potential. For Iberdrola, the deal supports its strategic pivot toward grid development in more stable markets.
SOURCE : REUTERS
