Overview of the Financing and Key Participants
Cox has secured the planned bank financing, totaling $2.65 billion, for the acquisition of Iberdrola Mexico, as announced on July 31. The financing is structured as a syndicated loan involving seven financial institutions, according to a statement released by the water and energy utility on Monday.
The participating entities include Citi and Goldman Sachs from the United States, Barclays and Deutsche Bank representing Europe, Santander and BBVA from Spain with significant presence in Mexico, and Bank of Nova Scotia from Canada, which has extensive operations in the Americas.
Reinforced Support and Confidence
This group of banks further solidifies the financial community’s support for Cox and their confidence in the value creation associated with the acquisition of Iberdrola Mexico.
The portion of the acquisition not covered by bank financing will be completed with capital provided by Cox, alongside institutional investor funding, as previously announced during Cox’s Capital Markets Day in London last October.
Regulatory Approvals and Timeline
With the securing of this financing, Cox confirms its ability to execute the acquisition and progresses in completing the transaction according to the planned schedule.
Cox has also received authorization from Mexico’s National Energy Commission (CNE) and Antimonopoly Commission (CNA) for the acquisition closure. These approvals were received “in a shorter timeframe than usual,” reinforcing the positive institutional reception of the project and enabling progress in the planned transaction timeline.
Significance of the Operation
The transaction scope includes over 2,600 megawatts (MW) of operational installed capacity, a 12-gigawatt (GW) generation project portfolio, and the largest private supplier in Mexico with approximately 25% market share, 20 terawatt-hours (TWh), and more than 500 large customers.
Strengthening Cox’s Position in the Energy Transition
This corporate milestone generates significant synergies for Cox, reinforcing its strategy to position Mexico as a key focus in the Latin American market. Cox aims to achieve this by integrating its water and energy activities, developing tailored hydrological solutions for national and local needs, and offering competitive electricity supply to the business community.
Furthermore, Cox will incorporate all of Iberdrola Mexico’s employees—approximately 700 professionals—preserving talent, ensuring operational continuity, and accelerating the identification of new growth opportunities in the country.
Key Questions and Answers
- What is the total financing secured by Cox for the acquisition? Cox has secured $2.65 billion in financing for the acquisition of Iberdrola Mexico.
- Which financial institutions are participating in the syndicated loan? The participating entities include Citi and Goldman Sachs (US), Barclays and Deutsche Bank (Europe), Santander and BBVA (Spain), and Bank of Nova Scotia (Canada).
- What regulatory approvals has Cox received for the acquisition? Cox has received authorization from Mexico’s National Energy Commission (CNE) and Antimonopoly Commission (CNA) for the acquisition closure.
- How does this acquisition impact Cox’s position in the energy transition? The acquisition strengthens Cox’s position by integrating water and energy activities, developing tailored hydrological solutions, and offering competitive electricity supply in the Mexican market.
- How many employees will Cox incorporate from Iberdrola Mexico? Cox will incorporate approximately 700 employees from Iberdrola Mexico, preserving talent and ensuring operational continuity.
