Iberdrola Sells Mexico Assets to Cox ABG Group

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Researched by Industrial Info Resources (Sugar Land, Texas)--On July 31, the Iberdrola S.A. (Bilbao, Spain) announced the signing of a purchase and sale agreement with Cox ABG Group S.A. (Seville, Spain) for the transfer of all its electricity generation assets in Mexico. The operation would involve the acquisition by Cox of Iberdrola México SA de CV for US$4.2 billion, and its completion depends on the approval of Mexican regulatory entities such as the National Energy Commission and the National Antitrust Commission, as well as the shareholders' meetings of both companies. The sale is expected to take place between the fourth quarter of 2025 and the first quarter of 2026.

In this way, the Cox Group will add some 2.6 gigawatts (GW) of installed capacity in cogeneration and combined-cycle natural gas plants, as well as wind and solar photovoltaic farms, to its generation assets. It will also acquire the largest private company supplying electricity to large customers (with a 25% share of the market) and a significant portfolio of renewable generation projects in different stages of development.

Iberdrola Mexico used to be one of the largest generators in the country, reaching 11.2 GW of installed capacity. However, in 2023 it began a divestment process in the country with the sale of 80% of its installed capacity (8.5 GW) to a trust with mostly public capital managed by Mexico Infrastructure Partners FF, S.A.P.I. de C.V. (Mexico City, Mexico). Although Iberdrola Mexico initially announced that the revenues obtained (about US$6 billion) would be reinvested in renewable generation projects in Mexico, the sale responds to a change in strategy focused on the expansion of electricity transmission and distribution networks in the United States, the United Kingdom, Brazil and Spain.

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