Spanish energy company Iberdrola has reached an agreement to sell a total of 8,534 megawatts (MW) in Mexico to the largest fund manager in the countryMexico Infrastructure Partners (MIP), for close to 6,000 million dollars.
As reported on Tuesday by the company to the National Securities Market Commission (CNMV), the Spanish regulator, the operation, carried out through several of its Mexican subsidiaries with MIP, a state-owned company from the Latin American country, It includes the transfer of 8,436 MW of combined gas cycles and a 103 MW wind farm.
With this sale, Iberdrola gets rid of nearly 75% of the installed power it had in Mexico -11,197 MW at the end of 2022, a market in which the company chaired by Ignacio Sánchez Galán assures that it will make new investments to lead the energy transition in the country.
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Specifically, as of December 31, 2022, the Spanish energy company had 11,197 MW installed in Mexico, of which a large part -9,660 MW- are combined gas cycles, 1,335 renewables (wind and solar) and 202 MW of cogeneration.
The assets included in the operation are the combined gas cycle plants Monterrey I and II, Altamira III and IV, Altamira V, Escobedo, La Laguna, Tamazunchale I, Baja California and Topolobampo II and III, Monterrey III and IV, Tamazunchale II and Enertek , along with the La Venta III onshore wind farm.
Valuation agreed at 6,000 million dollars
The valuation agreed between Iberdrola and MIP amounts to around 6,000 million dollars, an amount that could vary depending on the closing date of the transaction and other adjustments.
The operation, subject to the definitive signing of the contracts and obtaining the usual regulatory approvals, has the financial support of the National Infrastructure Fund of Mexico (Fonadin) and other public financial entities linked to the Government of Mexico.
After the sale, Iberdrola remains the leading private generator of renewable energy in Mexico and promotes compliance with its decarbonization commitments.
Likewise, it will continue to serve its Mexican customers by signing power purchase and sale agreements (PPAs) in order to provide the companies of the Iberdrola Group with the energy and power necessary to develop renewable generation in Mexico and meet its current and future objectives in the country.
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