Iberdrola has agreed to sell its businesses in Mexico, as part of its plan to boost investment in electricity transmission and distribution networks across key global markets.
The $4.2bn (€3.7bn) transaction includes 15 power plants totalling 2.6GW of capacity, alongside Iberdrola’s commercial activity and a portfolio of development projects, which the buyer plans to complete in line with Mexico’s national energy goals.
Assets include 1368MW of combined cycle and cogeneration plants and 1232MW of wind and solar capacity.
The deal reflects a valuation multiple of $1.6m per operational megawatt and could rise further through additional payments tied to future project completions.
Proceeds from the transaction will help fund Iberdrola’s €55bn investment programme in grid businesses in the US, UK, Brazil and Spain, nearly doubling its regulated asset base to €90bn.
The company said the move aligns with its long-term strategy to focus on electrification infrastructure, following the recent acquisition of Electricity North West by its UK subsidiary ScottishPower.
Iberdrola said the deal, together with a recent capital increase, existing liquidity and operating cash flow, secures the financial resources needed to meet its investment targets.
The transaction remains subject to regulatory approval.