- Iberdrola sold 75% of its installed capacity in Mexico to a Mexican public fund for around 6 billion dollars.
- The company says it will allow the company to focus on other markets.
- The sale is part of Iberdrola’s broader plan to grow in the renewable energy business in the United States and Europe.
The Spanish multinational energy company Iberdrola said that both the Government of Mexico and the company itself will benefit from the sale of 8,530 MW (13 generation plants) to a Mexican public fund for around US$ 6 billion, as announced this Tuesday.
According to Iberdrola, on the one hand, relations with Mexico are being strengthened and, on the other, You will be able to focus on your business in the United States and Europe.
The idea of the Spanish company is that the transfer of the assets to the State will finish materializing at the end of 2023, once regulatory approvals are obtained.
This is what Iberdrola told the Spanish National Securities Market Commission in a statement delivered this Wednesday, April 5.
The sale of Mexican assets occurs in a much broader plan by Iberdrola that extends until 2025 and that aims at growth in renewables in the United States and Europe.
According to the detail presented to the authority of the Spanish stock market, Iberdrola is selling 75 percent of its installed capacity in Mexico. On the other hand, it means improving your debt ratings and strengthening your financial position.
Today the Government of Mexico signed an agreement to purchase 13 electricity generation plants from Iberdrola that will form part of the public patrimony and will be operated by the CFE. It is a new nationalization. pic.twitter.com/gL38A7tcf9
– Andrés Manuel (@lopezobrador_) April 4, 2023
Iberdrola’s presence in Latin America
Iberdrola is one of the world’s leading renewable energy companies and has been making significant investments in Latin America for some time.
The company’s presence in the region is extensive. In addition to the operations in Mexico (they were by far the most important), it has investments in Brazil, Chile, Peru and Colombia.
Not counting the sale of part of its assets in Mexico announced on April 4, the company’s idea was to have a total installed capacity in the region of 20,000 MW by 2030.
In Brazil, Iberdrola is present in the northeastern states of Bahia and Pernambuco, where it has a total installed capacity of 1,500 MW. It is also building a 10 MW solar power plant in the state of Rio Grande do Norte.
In Chile, Iberdrola has a total installed capacity of 849 MW, its most significant project being the 103 MW Pampa Elvira wind farm. The company is also developing a 320 MW solar power plant in the Atacama desert.
In Peru, meanwhile, it has a 32 MW wind farm in operation and is also developing a 110 MW solar plant in the southeast of the country.
In Colombia, it has investments in the 400 MW El Cóndor hydroelectric project.
Mexico nationalizes Iberdrola assets
Returning to the sale of most of its assets in Mexico, Iberdrola understands that the operation was carried out “at an appropriate price” and with an “attractive valuation”.
President Andrés Manuel López Obrador announced on Tuesday that the purchase of Iberdrola by the largest Mexican fund manager, Mexico Infrastructure Partnerswhere the State has participation, supposes a “new nationalization”, because now those assets will be part of the “public patrimony”.
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