Background on Cox and Iberdrola Mexico
Cox, a Spanish energy company, announced that its extraordinary general meeting of shareholders approved the acquisition of 100% of Iberdrola Mexico for $4.2 billion, as reported on Tuesday. The transaction is still subject to approval from relevant regulatory authorities.
Cox’s Growing Presence in Mexico
With this acquisition, Cox, which has been present in Mexico for over a decade, gains access to a platform with 2,600 megawatts of operational installed capacity and becomes the largest private supplier in the country. Iberdrola Mexico holds a 25% market share and generates over 20 terawatt-hours distributed among more than 500 large clients.
Cox’s Strategic Positioning
In a statement, Cox asserted that this operation positions them as a key player in the Mexican energy market, aligning with the new regulatory context included in Plan Mexico. This plan strengthens legal security for foreign investment.
Cox’s Global Strategy and Leadership
Enrique Riquelme, Cox’s CEO, emphasized during the meeting that acquiring Iberdrola Mexico is “a decisive step” in the company’s global strategy. He added that it reinforces Cox’s presence in this significant market and establishes the company as a relevant global player in water and energy sectors.
Shareholder Approval Details
The shareholders’ meeting held in Seville had an attendance rate of 84.30%, and all three proposed agreements were approved with a 100% average of votes in favor.
Accelerated Strategic Plan
In July, Cox explained that the acquisition of Iberdrola Mexico completes its strategic plan (2025-2028) three years ahead of schedule. The company anticipates closing this year with proforma sales close to €3 billion and EBITDA of €750 million.
Regulatory Approval Requirement
The acquisition remains subject to approval from relevant regulatory authorities.
Key Questions and Answers
- Who is Cox? Cox is a Spanish energy company with a presence in Mexico for over a decade.
- What is Iberdrola Mexico? Iberdrola Mexico is a significant player in the Mexican energy market, with 25% market share and serving over 500 large clients.
- Why is this acquisition important for Cox? The acquisition positions Cox as a key player in the Mexican energy market, reinforces their presence in this important market, and strengthens their global standing in water and energy sectors.
- What are the financial expectations for Cox following this acquisition? Cox anticipates closing the year with proforma sales close to €3 billion and EBITDA of €750 million.
- What regulatory approvals are still needed? The acquisition remains subject to approval from relevant regulatory authorities.
