Spanish energy group Iberdrola has reached an agreement to acquire the 30.29% stake held by Caixa de Previdência dos Funcionários do Banco do Brasil (PREVI) in its Brazilian subsidiary Neoenergia. The transaction, valued at BRL11.95bn (€1.88bn, $2.02bn), will increase Iberdrola’s ownership to approximately 84% of Neoenergia’s share capital.
This deal aligns with Iberdrola’s strategy to strengthen its investments in regulated electricity networks. The agreed price of BRL32.5 per share will be paid in cash. The transaction is subject to regulatory approval and is expected to close in the coming months.
A dominant position in the Brazilian market
Neoenergia is the largest electricity distributor in Brazil by number of customers, serving nearly 40 million people. The company operates through five distribution licences in the states of Bahia, Rio Grande do Norte, Pernambuco, São Paulo, Mato Grosso do Sul, and in Brasilia. It also owns 18 transmission lines, 725,000 km of distribution lines, and 8,000 km of transmission infrastructure.
In addition to its networks, Neoenergia operates 3,800 MW of renewable generation capacity, mainly hydroelectric. In 2024, the company became the top investor in basic infrastructure in Brazil, with a total of BRL9.8bn (€1.5bn, $1.61bn) invested to expand, upgrade, maintain, and automate its networks.
Growth outlook in regulated networks
Favourable regulatory conditions in Brazil and rising energy demand linked to electrification support Neoenergia’s strong growth prospects. The company plans to increase its investments to modernise, automate, and extend its electricity networks.
Neoenergia’s distribution subsidiaries have been recognised for their operational performance by the Brazilian Association of Electricity Distribution Companies (ABRADEE), which granted them eight awards out of twelve. Cosern and Elektro were ranked first and second respectively among all national distribution companies.
Strategic focus on electric networks
The acquisition of PREVI’s stake further consolidates Iberdrola’s strategy focused on regulated electric networks, a growing component of its global operations. The group currently operates more than 1.4 million kilometres of power lines across the United States, the United Kingdom, Brazil, and Spain.
