Iberdrola is selling most of its business in that country to a Mexican government fund for 5.478 million euros.

Iberdrola has agreed to sell its subsidiary in Mexico to state-owned company México Infrastructure Partners (MIP) for approximately $6,000 million (approximately €5,478 million). These are the companies Iberdrola Generación México and Iberdrola Renovables México, through which it will sell 8,539 megawatts (MW) of installed capacity: 8,436 MW in gas combined cycles and 103 MW in wind power. The relationship between the Spanish power company and the president of the Mexican government, Andrés Manuel López Obrador, has been at a time of great tension and disagreement.

The assets that will form part of the deal will be Monterrey I and II, Altamira III and IV, Altamira V, Escobedo, La Laguna, Tamazunchale I, Baja California and Topolobampo II and III combined cycle gas plants, along with onshore wind. The farm La Venta III, all of which operate under the regime of independent power producers contracted by the Federal Electricity Commission, and the private gas combined cycles Monterrey III and IV, Tamazunchale II and Enertek, as the company explained in a letter sent to the CNMV.

Market sources claim that the Spanish power company will maintain more than 2,000 MW of power generation assets in renewables, combined cycles and cogeneration.

The transaction has the financial support of the Mexican National Infrastructure Fund (FONADIN) and other public financial entities related to the Government of Mexico.

The energy company explains that Iberdrola México will continue to provide services to its current customers in Mexico (as well as, temporarily, to those companies that enter the operational perimeter), for which it is “likely to enter into power purchase and sale contracts. with companies that will supply Iberdrola Group companies with the energy and capacity needed to develop renewable energy production in Mexico and meet their current and future goals in the country.

The relationship between the energy company and the Mexican government was not going well. Mexico’s president, Andrés Manuel López Obrador, has accused the company, led by José Ignacio Sánchez Galán, of obstructing the reform of Mexico’s electricity market that its chief executive was projecting.

Iberdrola achieved net profit of 4,339 million euros in 2022, up 11.7% and a new all-time record, the fifth in a row for the energy multinational. The Mexico operation will allow it to have more liquidity to buy US power company PMN in New Mexico, a deal that was delayed by the indictment of Sánchez Galán in the Villarejo case, from which he was eventually acquitted in 2022. who assigned the investigated facts.

Source: El Diario

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