Iberdrola has completed the $4bn (€3.41bn) sale of its Mexican business following the receipt of all required regulatory approvals, transferring operational assets with a capacity of 2.6GW to Cox, a global water and energy utility.
The transaction comprises 1.37GW from combined-cycle and cogeneration plants and 1.23GW from wind and photovoltaic sources.
Commercial operations and a pipeline of power generation projects are also included in the deal, with Cox intending to advance these as part of its growth strategy in Mexico.
Cox completed the purchase of Iberdrola México according to the terms announced in July 2025.
The acquired platform includes the largest private energy supplier in Mexico, with more than 25% market share and annual sales of 20TW-hours to more than 500 major customers.
The assets add more than 12GW of generation projects under development and employ more than 800 staff, whom Cox will retain.
Cox has received finance and advisory support from global banking and investment companies and was advised by a number of international legal practices.
The transaction marks a significant step in Cox’s stated intention to expand its integrated utility operations within priority markets across Latin America, making Mexico a key hub for further regional activity.
Cox executive chairman Enrique Riquelme Vives said: “This operation is framed within the vision of President Claudia Sheinbaum and her government to turn energy and water into authentic state policies at the service of inclusive and sustainable development for all Mexicans.
“With an integrated platform that combines efficient power generation and advanced water management solutions, Cox aligns fully with the Mexican Government’s priorities, which are aimed at reinforcing energy security, water sovereignty and long-term investment in strategic infrastructure under a clear and fair regulatory framework, with national planning capable of attracting international investment.”
For Iberdrola, the divestment fits within its ongoing strategy to focus investment on regulated transmission and distribution businesses and long-term contracted generation, primarily in its key markets of the US and the UK.
The decision aligns with Iberdrola's 2025–28 strategic plan, which allocates €58bn to develop electricity networks, prioritising the UK and US.
The terms account for the potential of future payments to Iberdrola pending the completion of additional generation projects.
