Iberdrola closes sale of 55% business stake in Mexico for $6.2bn

Spain's Iberdrola has completed the sale of a 55% stake in its business in Mexico for approximately $6.2bn, it announced on February 26. The transaction encompasses the sale of 13 generation plants with a combined installed capacity of 8.6 GW.

The divestment includes 99% gas-fired combined cycle power stations, with 87% operating under the Independent Power Producer regime and contracted with the Mexican state-owned power utility, CFE (Comisión Federal de Electricidad). Additionally, private combined cycle gas plants such as Monterrey III and IV (477 MW), Tamazunchale II (514 MW), and Enertek (144 MW) are part of the sale.

In total, the divestment represents 55% of Iberdrola's gross operating profit (EBITDA) in Mexico, including associated contracts and the 460 jobs linked to the operation. The move aligns with Iberdrola's strategic focus, leaving the company with 15 plants exclusively serving private customers and a robust portfolio of renewable projects in the country.

The divestment leaves Iberdrola with 15 plants, all activities with private customers, and a portfolio of renewable projects in the country. Following the divestment, Iberdrola retains over 6,000 MW of projects in its renewables portfolio, with more than 2,000 MW poised for development in the next five years.

The sale has been executed in accordance with the terms agreed upon in June, with Mexico Infrastructure Partners (MIP)