Cox Set to Approve Acquisition of Iberdrola’s Mexican Assets in Tomorrow’s Shareholder Meeting (2025)
- What’s Included in the Iberdrola Mexico Deal?
- How Does This Accelerate Cox’s Strategic Plan?
- What’s the Financial Impact So Far?
- Why Is Mexico Cox’s New Power Play?
- What’s Next After Shareholder Approval?
- FAQs: Decoding Cox’s Mega-Deal
In a landmark move, Cox Energy is poised to finalize its $4.2 billion acquisition of Iberdrola’s Mexican assets during tomorrow’s shareholder meeting. This strategic purchase includes 15 power plants (2.6 GW capacity), a thriving commercial arm, and a robust project pipeline—solidifying Mexico as Cox’s growth epicenter. Here’s why this deal is rewriting Latin America’s energy playbook.
What’s Included in the Iberdrola Mexico Deal?
The crown jewels? A diversified portfolio featuring 1,368 MW of combined-cycle/cogeneration plants and 1,232 MW of wind/solar assets. But the real kicker is the commercial business—Mexico’s largest qualified user supplier with 25% market share (20+ TWh annually). The development pipeline alone could make Wall Street blush: 12 GW of future projects across energy types, with Cox planning phased payments beyond the initial $4.2B as projects come online. "This isn’t just an acquisition—it’s a springboard," notes BTCC analyst Daniel Kim. "Cox is buying market dominance and optionality."
How Does This Accelerate Cox’s Strategic Plan?
Talk about fast-forwarding ambitions. Originally targeting 2025-2028 for this scale, Cox now expects proforma sales of €3B and €750M EBITDA by December 2025—three years ahead of schedule. CEO Enrique Riquelme calls it "transformational synergy," especially with Mexico’s water-energy integration framework. The numbers speak louder than corporate jargon: $10.7B in planned Mexico investments through 2030, including $4B+ for new energy assets and $1.5B for water concessions. Even after partial divestments (40% to local pension funds via Fibra-e vehicles), Mexico will anchor 50% of Cox’s €5.5B three-year investment plan.
What’s the Financial Impact So Far?
Cox Energy’s Q3 2025 results hint at the deal’s potential: Net profit surged 30% YoY to €26.3M, with assets growing to €671.4M. Their operational footprint now spans 162 MWp, including Chile’s Meseta de Los Andes project. But the 4.8 GW development pipeline is where the magic happens—imagine powering 3 million+ homes once fully operational. As TradingView data shows, Cox’s stock has gained 18% since the deal’s July announcement, outperforming regional peers.
Why Is Mexico Cox’s New Power Play?
Beyond the obvious energy potential, Mexico offers regulatory tailwinds. The government’s generation-friendly policies align perfectly with Cox’s water-energy integration model. Riquelme envisions "competitive electricity, localized water solutions, and 10,000+ jobs"—a trifecta that could make Mexico contribute €600M EBITDA annually. With CFE partnerships in the works and plans to recycle capital through market exits elsewhere, Cox is all-in on Latin America’s second-largest economy.
What’s Next After Shareholder Approval?
Watch for three immediate moves: 1) Closing the Iberdrola transaction by Q1 2026, 2) Launching Fibra-e investment vehicles, and 3) Breaking ground on the first 1.2 GW of pipeline projects. As one Mexico City trader quipped, "Cox isn’t just buying megawatts—they’re buying the grid’s future." With $200M annual free cash Flow post-debt, this could be the start of Mexico’s energy renaissance.
FAQs: Decoding Cox’s Mega-Deal
How will Cox fund the additional payments beyond $4.2B?
Through project financing and recycled capital from partial asset divestments, particularly via Fibra-e structures.
What percentage of Cox’s global assets will Mexico represent post-acquisition?
Approximately 35-40% of total assets, making it Cox’s largest single-country exposure.
How does this impact Mexico’s renewable energy targets?
Cox’s 1.2 GW existing renewables + 12 GW pipeline could contribute 15% to Mexico’s 2030 clean energy goals.
