Iberdrola’s stake in its Brazilian subsidiary Neoenergia will climb to 98%, after the Spanish parent company bought out a further 14.2% of shares as part of a takeover bid.
The transaction involved a cash outlay of approximately €980m, and will delist the Brazilian distribution company.
Iberdrola could acquire 100 % of Neoenergia’s share capital before the end of the second quarter of 2026 as a result of the Brazilian company potentially exercising its right of squeeze-out, Iberdrola said in a release.
The transaction has had a positive impact on Iberdrola’s and reinforces its commitment to Brazil and to growth centred on electricity networks, which account for 90 % of Neoenergia’s business, Iberdrola added.
Neoenergia supplies electricity to around 40 million Brazilians through five distribution companies in the states of Bahia, Rio Grande do Norte, Pernambuco, São Paulo, Mato Grosso do Sul and Brasília, as well as via 18 transmission lines, making it the country’s leading distribution group in terms of customer numbers.
Neoenergia, which operates in 18 states and the Federal District, has over 725,000 kilometres of electricity distribution lines and 8,000 kilometres of transmission lines, and has 3,600 MW of renewable generation capacity, mainly hydroelectric.