Madrid-based Cox Power has agreed to accumulate Iberdrola México in a deal valued at US $4.2 billion together with debt, the 2 firms introduced on Friday.
President Claudia Sheinbaum known as the acquisition “an indication of certainty in our nation, of confidence and of a need to maintain investing,” at her Friday morning press convention.
(Bolsamania.com/on X)
“I’ve spoken to Cox administration and they’re very dedicated to investing in Mexico and to the event of assorted tasks,” Sheinbaum mentioned.
Cox, an 11-year-old water and renewable vitality firm with a market capitalization of round US $958 million, will purchase Iberdrola’s 15 energy crops. The information company Reuters mentioned 75% of the deal can be funded with debt and the rest with fairness.
Reuters mentioned closing is predicted by the primary quarter of 2026. Approval is nearly assured since shareholders representing 84% of the corporate’s capital have already expressed help for the acquisition.
In a press release, Cox mentioned it should make investments greater than US $10.7 billion in Mexico between 2025 and 2030.
The corporate outlined the deal as a landmark acquisition, including that it “goals to leverage [our] established presence and in-depth data of the Mexican market, reinforcing its place in high-growth strategic markets.”
The corporate mentioned it sees Mexico as a strategic market “due to its sturdy authorized certainty” beneath the brand new vitality regulatory tips in the federal government’s Plan México.
La presidenta @Claudiashein indicó que la empresa Cox compró los activos de Iberdrola de forma totalmente authorized y calificó de positiva esta decisión, ya que dijo, es un privado que está de acuerdo con las nuevas normas de México para seguir invirtiendo en el sector.… pic.twitter.com/kCKzqSttcr
— SENER México (@SENER_mx) August 1, 2025
Cox referred to Mexico because the second most-important electrical energy market in Latin America (solely Brazil has a bigger client market). It highlighted the nation’s “strong macroeconomic fundamentals and an investment-grade financial system underpinned by a accountable fiscal coverage.” It additionally lauded Mexico’s banking system as “sound and steady.”
The acquisition of Iberdrola’s platform affords huge potential for elevated penetration and progress in Mexico’s energy sector, Cox believes, particularly resulting from “a rising demand for vitality” that’s driving funding.
The corporate’s five-year funding goal not solely contains the Iberdrola acquisition, but additionally “greater than US $4 billion in new vitality belongings, as much as US $1.5 billion in water concession belongings and the event of a hub targeted on Mexican welfare.”
Cox mentioned it additionally hopes to co-invest in new vitality tasks alongside Mexico’s Federal Electrical energy Fee (CFE), the state-owned electrical utility.
The corporate says the deal creates “important synergies inside its technique to make Mexico one in all its key enterprise hubs in Latin America by integrating water and vitality options.”
Iberdrola, a Spanish multinational electrical utility which has operated in Mexico since 1999, introduced its intention to promote its remaining Mexico belongings final week, hiring Barclay’s Funding Financial institution to handle the sale. On the time of that announcement, the belongings on the market had been valued at US $4.7 billion.
The 15 energy crops being offered — six wind parks, three photo voltaic parks and 6 fuel and cogeneration crops — have a mixed 2.6 gigawatts (GW) of capability..
The acquisition additionally features a pipeline of 11.8 GW of assorted renewable vitality sources. Cox says 1.4 GW of the renewable vitality tasks within the pipeline are at a complicated stage of growth and should begin industrial operations in 2027-28.
Iberdrola started divesting its belongings in Mexico, together with a US $6 billion sale to the federal government in 2023, because it grew to become a frequent goal of then-President Andrés Manuel López Obrador’s assaults.
The Cox sale will full Iberdrola’s exit from the nation.
With stories from El Economista, El Financiero, La Jornada and Reuters
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