Iberdrola has agreed to sell its power generation and commercial businesses in Mexico in a deal valued at $4.2 billion (€3.7 billion), as part of its strategy to increase investment in electricity transmission and distribution networks across key international markets.
The transaction includes 15 power plants with a combined capacity of 2.6 gigawatts (GW), comprising 1,368 megawatts (MW) of combined cycle and cogeneration plants, and 1,232 MW of wind and solar capacity. The buyer also acquires Iberdrola’s commercial activities and a portfolio of development projects, which are expected to be completed in line with Mexico’s national energy objectives.
The deal reflects a valuation multiple of approximately $1.6 million per operational megawatt and may increase through additional payments linked to future project completions.
Iberdrola said the proceeds will support its €55 billion investment programme targeting grid infrastructure in the United States, United Kingdom, Brazil, and Spain, aiming to nearly double its regulated asset base to €90 billion.
The company added that the sale aligns with its long-term strategy to prioritise electrification infrastructure. This follows the recent acquisition of Electricity North West by its UK subsidiary ScottishPower.
Iberdrola noted, “The deal, together with a recent capital increase, existing liquidity and operating cash flow, secures the financial resources needed to meet our investment targets.
