Iberdrola firms sale of Mexican gas power business
Portfolio to be acquired by trust of Mexico Infrastructure Partners for $6bn consists mostly of combined-cycle gas power plants, while Spanish renewables giant to keep most wind and solar projects
Iberdrola sealed a deal to sell the majority of its Mexican power generation assets – mostly in the gas sector – to a trust managed by Mexico Infrastructure Partners (MIP) for $6bn.
The Spanish renewables giant and MIP signed a binding agreement over the sale of the portfolio which represents 55% of Iberdrola’s earnings before interest, taxes, depreciation and amortisation (Ebitda) in the Latin American country.
Iberdrola will keep 13 power plants in Mexico, all of its activity with private customers, as well as its 6GW renewables portfolio that the company plans to boost further in coming years.
The company when the deal was first announced said it "gives us opportunities to accelerate growth in the US given the IRA. Probably at some point we will review our renewable plans in the US.
“In Europe this deal improves our financial strength so we will be look to new opportunities also.”
The transaction comes after Iberdrola chairman Ignacio Galán and Mexican President Andrés Manuel Lópes Obrador in April had signed an agreement of intent between subsidiaries of Iberdrola Mexico and MIP, with the pledge to advance the development of renewables in the country.
The portfolio to be sold consists to 99% of combined cycle gas plants, and to 87% of plants operating under Mexico’s independent power producer regime contracted with the country’s federal electricity commission (CFE).
As well as the gas plant, Iberdrola will also sell the 103MW La Venta III wind farm.
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