Iberdrola Exits Mexico: $10B+ Sale to Cox, CFE to Seek Private Investment

Cox completes $4.2 billion acquisition of Iberdrola Mexico, securing financing from Goldman Sachs and a seven-bank syndicate Spanish utility Cox has finalized its €3.6 billion ($4.2 billion) acquisition of Iberdrola’s Mexico business, a deal backed by Goldman Sachs and a syndicate of seven banks. The transaction, completed in recent days, marks a major expansion of Cox’s presence in Mexico’s energy sector. The acquisition includes 15 operational power plants with over 2,600 MW of installed capacity, comprising 1,368 MW from combined-cycle and cogeneration facilities and 1,232 MW from renewable energy assets. Cox too gains control of Mexico’s largest supplier to qualified users, which holds a 25% market share and delivers more than 20 TWh annually across over 500 large clients. In addition to the existing assets, Cox inherits a development pipeline exceeding 12 GW from various energy sources. The company plans to invest more than $10.7 billion in Mexico between 2025 and 2030, including the acquisition cost, to support long-term growth in the region. Cox stated the deal aligns with its strategic focus on long-term, recurring EBITDA-generating assets, a goal highlighted during its November IPO. The transaction is expected to boost Cox’s pro forma revenues by over €1.3 billion and increase EBITDA by more than €500 million. The company now anticipates closing 2025 with pro forma revenues of approximately €3 billion and €750 million in EBITDA. The acquisition was enabled under Mexico’s Plan México, which maintains the state-owned CFE’s mandated 54% share of electricity generation while opening opportunities for private investment in regulated and contracted assets. Cox said the strong legal framework of the plan makes Mexico a strategic market for its operations. Goldman Sachs participated in the financing as both a lender and managing partner, contributing €200 million in equity capital alongside leading the syndicated loan. Cox secured the financing in late January, positioning the Valencia-based firm as a dominant player in Mexico’s private electricity market. The deal integrates Iberdrola Mexico’s workforce to ensure operational continuity and support future growth. Cox described the transaction as transformational, creating significant synergies by combining its water and energy expertise in a high-growth market.