Madrid-based Cox Energy has agreed to acquire Iberdrola México in a deal valued at US $4.2 billion including debt, the two companies announced on Friday.
President Claudia Sheinbaum called the acquisition “a sign of certainty in our country, of confidence and of a desire to keep investing,” at her Friday morning press conference.
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“I have spoken to Cox management and they are very committed to investing in Mexico and to the development of various projects,” Sheinbaum said.
Cox, an 11-year-old water and renewable energy company with a market capitalization of around US $958 million, will buy Iberdrola’s 15 power plants. The news agency Reuters said 75% of the deal will be funded with debt and the remainder with equity.
Reuters said closing is expected by the first quarter of 2026. Approval is virtually assured since shareholders representing 84% of the company’s capital have already expressed support for the acquisition.
In a statement, Cox said it will invest more than US $10.7 billion in Mexico between 2025 and 2030.
The company defined the deal as a landmark acquisition, adding that it “aims to leverage [our] established presence and in-depth knowledge of the Mexican market, reinforcing its position in high-growth strategic markets.”
The company said it sees Mexico as a strategic market “thanks to its strong legal certainty” under the new energy regulatory guidelines in the government’s Plan México.
La presidenta @Claudiashein indicó que la empresa Cox compró los activos de Iberdrola de forma totalmente legal y calificó de positiva esta decisión, ya que dijo, es un privado que está de acuerdo con las nuevas normas de México para seguir invirtiendo en el sector.… pic.twitter.com/kCKzqSttcr
— SENER México (@SENER_mx) August 1, 2025
Cox referred to Mexico as the second most-important electricity market in Latin America (only Brazil has a larger consumer market). It highlighted the country’s “solid macroeconomic fundamentals and an investment-grade economy underpinned by a responsible fiscal policy.” It also lauded Mexico’s banking system as “sound and stable.”
The acquisition of Iberdrola’s platform offers vast potential for increased penetration and growth in Mexico’s power sector, Cox believes, especially due to “a rising demand for energy” that is driving investment.
The company’s five-year investment target not only includes the Iberdrola acquisition, but also “more than US $4 billion in new energy assets, up to US $1.5 billion in water concession assets and the development of a hub focused on Mexican welfare.”
Cox said it also hopes to co-invest in new energy projects alongside Mexico’s Federal Electricity Commission (CFE), the state-owned electric utility.
The company says the deal creates “significant synergies within its strategy to make Mexico one of its key business hubs in Latin America by integrating water and energy solutions.”
Iberdrola, a Spanish multinational electric utility which has operated in Mexico since 1999, announced its intention to sell its remaining Mexico assets last week, hiring Barclay’s Investment Bank to manage the sale. At the time of that announcement, the assets for sale were valued at US $4.7 billion.
The 15 power plants being sold — six wind parks, three solar parks and six gas and cogeneration plants — have a combined 2.6 gigawatts (GW) of capacity..
The acquisition also includes a pipeline of 11.8 GW of various renewable energy sources. Cox says 1.4 GW of the renewable energy projects in the pipeline are at an advanced stage of development and may start commercial operations in 2027-28.
Iberdrola began divesting its assets in Mexico, including a US $6 billion sale to the government in 2023, as it became a frequent target of then-President Andrés Manuel López Obrador’s attacks.
The Cox sale will complete Iberdrola’s exit from the country.
With reports from El Economista, El Financiero, La Jornada and Reuters
