Spanish group Cox has submitted an acquisition offer valued at around EUR4 bn (USD4.69 bn) to take over the Mexican assets of energy giant Iberdrola, according to sources close to the matter. The deal would involve fifteen renewable energy power plants currently operated by Iberdrola in the country, in a context where the Mexican energy sector is experiencing significant regulatory and fiscal changes.
A strategic withdrawal by Iberdrola
Iberdrola, a historic player in the Spanish electricity market, initiated the sale process by appointing investment bank Barclays to oversee the divestment of its Mexican units. This transaction follows a major sale completed in 2024, in which Iberdrola sold 55% of its Mexican assets to the Mexican government for USD6 bn, an operation described at the time as a “new nationalisation” by Mexican authorities.
Iberdrola’s gradual withdrawal from the Mexican market takes place amid concerns related to the legal and fiscal stability of the country’s energy sector. Foreign companies are facing constantly changing rules and increased administrative oversight, which has fuelled divestment strategies observed in recent months.
Cox, a new player in the Mexican market
Already present in Mexico, Cox is reinforcing its international strategy by targeting strategic infrastructure. The takeover of Iberdrola’s power plants would allow the group to increase its production capacity and accelerate its expansion across the Americas. The specific terms of the offer are still under discussion, with no public comment issued by either company at this stage.
The Mexican energy sector continues to attract the attention of international investors despite regulatory uncertainties in the local environment. The next steps of the sale process will depend on Iberdrola’s acceptance of the offer and approval by Mexican regulatory authorities. The outcome of this operation could shape the dynamics of the Mexican electricity market for years to come.
