Cox’s US$4 billion acquisition of Iberdrola’s assets in Mexico positions it as the country’s largest private energy supplier, with 2,600 MW of installed capacity across 12 states. The deal resolves key regulatory frictions from the previous administration and aligns private investment with the energy sovereignty agenda of Claudia Sheinbaum, including the 54% market share target for the Federal Electricity Commission. Backed by US$2.65 billion in international financing, the transaction signals a shift toward greater long-term stability in Mexico’s evolving public-private energy framework.

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Spanish utility group Cox has completed the acquisition of Iberdrola’s Mexican assets for US$4 billion, establishing itself as the largest private energy supplier in the country. Finalized in late April 2026, the deal concludes a process launched in July 2025 and reshapes the competitive landscape of Mexico’s energy sector. 

The acquisition incorporates a high-quality asset base with more than 2,600MW of installed capacity. The portfolio includes 1.37GW from combined-cycle and cogeneration plants, along with 1.23GW from wind and photovoltaic facilities across 12 states. Following the acquisition, Cox holds a market share exceeding 25% of the private supply segment and manages approximately 20TWh of electricity commercialization for more than 500 large, creditworthy clients.

“The closing of this operation marks a decisive step in the evolution of Cox,” said Enrique Riquelme, executive chairman of the company. “We are incorporating a high-quality platform in a market we know well, maintaining our focus on discipline, integration and long-term value creation. This acquisition reinforces our profile as an integrated utility and strengthens our scale.”

The deal was backed by a US$2.65 billion financing package led by Goldman Sachs, which acted as lender and managing partner while contributing €200 million (US$234.45 million) in equity. Additional participating institutions included Citi, Barclays, Deutsche Bank, Scotiabank, Santander and BBVA. As part of the transition, Cox will integrate more than 800 employees from Iberdrola México to ensure operational continuity and support future expansion.

The sale follows a period of regulatory and political friction between Iberdrola and the previous Mexican administration under Andrés Manuel López Obrador. During that period, the company faced fines of nearly US$600 million and initiated international arbitration proceedings. Tensions culminated in a landmark 2023 transaction in which Iberdrola sold 13 generation plants to the Federal Electricity Commission for US$6.6 billion.

Riquelme said the latest deal aligns with the policy direction of President Claudia Sheinbaum, whose administration is prioritizing energy and water as pillars of sustainable development. He added that the current regulatory framework offers sufficient certainty for private investment, despite reforms requiring the CFE to maintain a 54% share of national power generation.

Strong Financial Performance in 2025

The acquisition follows a record year for Cox. The company reported a 62% year-over-year increase in revenue to €1.14 billion (US$1.34 billion) in 2025, while EBITDA rose 23% to €225 million (US$263.76 million), representing a 20% margin. Net income increased 16% to €69 million (US$80.89 million).

On a pro forma basis — including the Iberdrola México assets — 2025 revenue would have reached €2.55 billion (US$2.99 billion), with EBITDA climbing to €786 million (US$921.47 million). This effectively doubles revenue and triples EBITDA, significantly strengthening the company’s financial profile. Operating cash flow totaled €127 million (US$148.87 million), with a cash conversion ratio of 56% and a net debt-to-EBITDA ratio of 0.9x.

Management attributed these results to its dual operating model: the “Asset Co.” division, focused on long-term infrastructure investments with stable returns, and the “Service Co.” division, which delivers engineering, transmission and operational services.

Mexico as a Strategic Hub

Mexico has become Cox’s central growth market, accounting for more than 50% of its global investment commitments. The company plans to invest an additional US$6 billion in the country through 2030, targeting renewable energy generation and advanced water infrastructure.

Beyond its current asset base, the Iberdrola transaction provides access to a development pipeline of approximately 12,000MW in renewable projects at various stages.

Internationally, Cox expanded its footprint in 2025 with operations in Panama, Brazil, Chile and Morocco. Key projects include the acquisition of 24MW of solar capacity in Panama and the expansion of the Agadir desalination complex in Morocco to 400,000 cubic meters per day.