Iberdrola strengthens commitment to Brazil as it seeks 100% control of Neoenergia in €1 billion offer

Iberdrola strengthens commitment to Brazil as it seeks 100% control of Neoenergia in €1 billion offer

(IN BRIEF) Iberdrola has submitted a takeover bid for the remaining 16.2% of Neoenergia, offering the same 32.5 Brazilian reais per share paid to PREVI in October 2025, adjusted by the SELIC interest rate. The acquisition—valued at around €1.03 billion before SELIC adjustments—would increase Iberdrola’s ownership to 100% and enable Neoenergia’s delisting. Iberdrola states that full control will simplify Neoenergia’s structure, improve financial and operational flexibility and reduce public-market costs. Neoenergia is Brazil’s largest electricity distribution group, serving 40 million people across 18 states and the Federal District, with extensive grid infrastructure and 3,800 MW of renewable generation. The transaction reinforces Iberdrola’s commitment to growth in regulated electricity networks, which form the core of Neoenergia’s business and align with Iberdrola’s global strategy.

(PRESS RELEASE) BILBAO, 24-Nov-2025 — /EuropaWire/ — Iberdrola has launched a takeover bid for the remaining 16.2% of Neoenergia, a move that would bring its ownership of the Brazilian electricity group to 100%. The offer mirrors the price paid on 31 October 2025 to PREVI—Caixa de Previdência dos Funcionários do Banco do Brasil—for its 30.29% stake: 32.5 Brazilian reais per share, updated with official SELIC interest from that date. The full disbursement for the acquisition, assuming no interim dividends and before SELIC indexation, is expected to amount to approximately €1.03 billion.

Iberdrola already controls 83.8% of Neoenergia and intends to delist the company once the transaction is completed. According to the Group, taking the business fully private will simplify Neoenergia’s corporate structure, enhance operational and financial flexibility, and reduce the administrative and regulatory costs associated with maintaining the company’s publicly traded status.

The acquisition reinforces Iberdrola’s long-term commitment to Brazil, where Neoenergia operates as the country’s leading electricity distribution group. Around 90% of Neoenergia’s business is based on regulated electricity grids, aligning with Iberdrola’s global strategy of investing in stable, long-term network infrastructure.

Neoenergia serves nearly 40 million people, operating through five major distributors across the states of Bahia, Rio Grande do Norte, Pernambuco, São Paulo, Mato Grosso do Sul and the Federal District, in addition to 18 transmission concessions. Its infrastructure includes over 725,000 km of distribution lines, 8,000 km of transmission lines and a renewable generation portfolio of 3,800 MW, primarily hydroelectric.

Globally, Iberdrola manages a network of more than 1.4 million kilometres of electricity transmission and distribution lines across the United States, the United Kingdom, Brazil and Spain. With full ownership of Neoenergia, the Group aims to consolidate its position as a leader in regulated grid assets and strengthen its presence in one of Latin America’s most important and dynamic energy markets.

Corporate Communication (contact for Media)

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

SOURCE: IBERDROLA