Cox announces purchase of Iberdrola Mexico for $4.2 billion dollars

Cox announced on Thursday that the acquisition of Iberdrola Mexico for US$4.2 billion has been finalized in recent days.

“The transaction seeks to leverage Cox’s consolidated presence and deep knowledge of the Mexican market, strengthen its position in strategic and high-growth markets through a strategic investment that is aligned with the company’s objectives of investing in assets that generate recurring and long-term EBITDA, as set out in its IPO last November,” the company said in a statement.

Cox specified that the scope of the transaction encompasses an installed operating capacity of 2,600 MW, with 1,368 MW from combined cycle and cogeneration facilities, 1,232 MW from renewable assets, and a generation project portfolio totaling 12GW.

Furthermore, the Spanish company stated that it comprises the largest supplier in Mexico, which holds a 25% market share of over 20 TWh distributed among more than 500 major clients.

“The agreed price, at US$4.2 billion, assumes a multiple of 6.5x estimated 2025 EBITDA,” Cox added.

Cox pointed out that this transaction is transformational for the company, “elevating it to a new level in terms of size and strategic positioning, and consolidating it as an integrated utility with a solid and recognized leadership in the Mexican electricity market”.

The Spanish company mentioned that with this acquisition it completes its strategic plan three years earlier, initially established for the period 2025-2028.

“This would mean closing the year 2025 with a proforma sales figure of close to 3,000 million euros and 750 million euros of EBITDA,” according to the document.