Iberdrola Mexico and Mexico Infrastructure Partners Agree on Asset Acquisition for $6 Billion

The President of Mexico, Andrés Manuel López Obrador (AMLO), and the Iberdrola Executive Chairman, Ignacio Galán.

(IN BRIEF) Iberdrola Mexico and Mexico Infrastructure Partners (MIP) have signed an agreement where MIP’s trust will acquire 55% of Iberdrola’s gross operating profit (EBITDA) in Mexico, including associated contracts and over 410 jobs. The agreement allows Iberdrola to focus on increasing its wind and solar assets while retaining 13 plants and its activities with private customers. The transaction covers gas plants under the Independent Power Producer regime, and the sale is valued at approximately $6 billion. The Mexican government’s public financial entities support the deal. Additionally, Iberdrola’s generation permit for the Santiago wind farm, with a capacity of 105 MW, has been authorized by Mexico’s Energy Regulatory Commission.

(PRESS RELEASE) BILBAO, 12-Jun-2023 — /EuropaWire/ — Iberdrola (BME: IBE), a Spanish multinational leader in clean energy and a pioneer in the deployment of smart grids, announces that Iberdrola Mexico and Mexico Infrastructure Partners (MIP) have entered into a binding agreement, with MIP’s trust acquiring 55% of Iberdrola’s gross operating profit (EBITDA) in Mexico, along with associated contracts and over 410 related jobs. As part of the agreement, Iberdrola will retain 13 plants, its activities with private customers, and its portfolio of renewable projects, enabling the company to further expand its wind and solar assets in the country.

The agreement primarily covers combined cycle gas plants, with 99% of the assets falling under this category, including plants operating under the Independent Power Producer regime contracted with the Federal Electricity Commission (CFE). The contracted assets encompass several plants such as Monterrey I and II, Altamira III and IV, Escobedo, and more. In total, the divestment includes 87% of the total installed capacity.

Additionally, the agreement encompasses private gas combined cycle plants, such as Monterrey III and IV, Tamazunchale II, and Enertek. The acquisition also includes the transfer of over 400 employees who will become part of MIP’s trust.

The agreed value of the sale amounts to approximately $6 billion and has received financial support from Mexico’s National Infrastructure Fund (Fonadin) and other public financial entities associated with the Mexican government.

Despite the divestment, Iberdrola remains committed to its renewable energy projects in Mexico and holds a portfolio of 6,000 MW to provide energy to its private customers.

The agreement follows the signing of an agreement of intent between Iberdrola Mexico and MIP, announced by Iberdrola Chairman Ignacio Galán and Mexican President Andrés Manuel López Obrador in April. The agreement signifies a new phase in advancing renewable energy development in the country.

Furthermore, Iberdrola’s generation permit for the Santiago wind farm in Guanajuato, with a capacity of 105 MW, was recently authorized by Mexico’s Energy Regulatory Commission (CRE) in a unanimous vote during an extraordinary session.

With these new investments, the Iberdrola Group reasserts its leadership in Mexico’s renewable energy sector.

Media contact:

Tel: +34 91 784 32 32
comunicacioncorporativa@iberdrola.es

SOURCE: Iberdrola, S.A.