Cox Group Acquires Iberdrola Mexico in $4.2B Deal

Aug 1, 2025 08:42 AM ET
  • Cox Group acquires Iberdrola's Mexican assets for $4.2B, boosting renewable energy capacity and fueling ambitious growth plans in Mexico.

Spanish water and energy management company Cox Group has acquired Iberdrola SA’s Mexican assets, including a 1.2-GW renewable energy fleet, for USD 4.2 billion. This acquisition aligns with Cox's three-year acquisition plan and provides Iberdrola with funds to support its EUR 55-billion investment program for its electricity transmission and distribution network subsidiaries, primarily in the US and UK. The transaction was finalized recently, as announced by the companies.

Iberdrola Mexico owns 2,600 MW of installed operational capacity, with a mix of combined-cycle, cogeneration, wind, and solar photovoltaic assets. The agreed price implies a multiple of USD 1.6 million per MW of operating capacity. Cox expects to achieve pro forma revenues of nearly EUR 3 billion and EBITDA of EUR 750 million by 2025. The company plans to invest USD 10.7 billion in Mexico from 2025 to 2030, aiming to create synergies and integrate over 800 professionals from the acquired business.

What are the strategic benefits of Cox Group's acquisition of Iberdrola's Mexican assets?

  • Diversification of Energy Portfolio: The acquisition allows Cox Group to diversify its energy portfolio by adding a significant amount of renewable energy capacity, enhancing its presence in the renewable energy sector.
  • Market Expansion: By acquiring Iberdrola's assets in Mexico, Cox Group gains a foothold in the Mexican energy market, which can serve as a strategic base for further expansion in Latin America.
  • Increased Revenue and EBITDA: The acquisition is expected to boost Cox Group's financial performance, with projected pro forma revenues of nearly EUR 3 billion and EBITDA of EUR 750 million by 2025.
  • Synergies and Integration: The integration of over 800 professionals from Iberdrola's Mexican operations is expected to create synergies, improve operational efficiencies, and enhance the overall capabilities of Cox Group.
  • Long-term Investment Plans: Cox Group's commitment to investing USD 10.7 billion in Mexico from 2025 to 2030 demonstrates a long-term strategic vision for growth and development in the region.
  • Strengthened Competitive Position: The acquisition strengthens Cox Group's competitive position in the global renewable energy market, allowing it to leverage new technologies and innovations.
  • Contribution to Sustainability Goals: By expanding its renewable energy capacity, Cox Group aligns with global sustainability goals and enhances its reputation as a leader in sustainable energy solutions.