Key Takeaways:
Spanish multinational Grupo Cox finalized its US$4.2 billion acquisition of Iberdrola's Mexico assets, significantly expanding its footprint in the Latin American energy market and marking one of the sector's largest transactions of the past year. The deal, which closed on May 14, 2026, was completed on terms first announced in July 2025.
"The closing of this acquisition is a milestone for Cox and for the energy sector across the region,” said Francisco J. Cerezo, Chair of the US-Latin America and Ibero-American practices at DLA Piper, which advised Cox. “It has been a privilege for us to accompany Cox in a transaction of this complexity and scale."
The acquisition was backed by a US$2.65 billion syndicated loan from a consortium of seven global banks, including Citi, Barclays, and Goldman Sachs. The remainder was covered by capital from Cox and financing from institutional investors such as Allianz Global Investors, Gramercy, and GMO.
This transaction transforms Grupo Cox into a major power player in Mexico, giving it control of the country's largest private power supplier with over 25% market share. The deal underscores Mexico's strategic importance for long-term energy investment and may influence future M&A activity in the region's rapidly evolving energy landscape.
The financing for this landmark deal was a multi-faceted arrangement. The syndicated loan facility, a cornerstone of the funding, saw participation from a global consortium of financial heavyweights: Citi, Barclays, BBVA, Deutsche Bank, Goldman Sachs, Scotiabank, and Santander. This diverse banking group highlights the international confidence in the transaction's viability and Cox's strategic vision. The portion of the acquisition cost not covered by this debt was supplemented by a combination of Cox's own capital and significant contributions from institutional investors, demonstrating a broad base of financial support.
The assets acquired by Grupo Cox are substantial. They include a generation platform with 2,600 MW of installed operating capacity, immediately positioning Cox as a significant energy producer. More strategically, the deal includes a development pipeline of approximately 12,000 MW of renewable projects. This pipeline is crucial for Cox's future growth and aligns with the global shift towards cleaner energy sources. The acquisition also includes Mexico's largest private power supplier, which serves over 500 large corporate customers and commercializes 20 TWh of energy, providing a stable and recurring revenue stream.
This article is for informational purposes only and does not constitute investment advice.
