Cox, a global water and energy utility, has secured the planned bank financing for a total amount of USD 2.65 billion to complete the acquisition of Iberdrola México, which was announced on 31 July.
The transaction is structured as a syndicated loan underwritten by seven top-tier financial institutions: Citi, Goldman Sachs, Barclays, Deutsche Bank, Santander, BBVA and Scotiabank (Bank of Nova Scotia).
The portion of the purchase price not covered by bank financing will be completed through equity contributions from Cox, together with funding from institutional investors. This structure is fully aligned with what the company outlined during its Capital Markets Day held in London last October. With the financing now secured, Cox confirms its ability to execute the acquisition and continues to move towards completion in line with the established timetable.
In parallel, the company has obtained the necessary regulatory approvals from Mexico’s Comisión Nacional de Energía (CNE) and the Comisión Nacional Antimonopolio (CNA). These authorisations were granted in a shorter-than-usual timeframe, underscoring the strong institutional support for the transaction and allowing the process to progress as planned.
“This transaction is transformational for the company, taking Cox to a new level in terms of scale and strategic positioning, and consolidating it as an integrated utility with strong and recognised leadership in the Mexican power market,” said Enrique Riquelme, Executive Chairman of Cox.
“The group of banks backing the financing demonstrates the financial community’s confidence in Cox and its support for the transaction.”
The acquisition enables Cox to capitalise on its deep understanding of the Mexican market while strengthening its footprint in strategic, high-growth regions. It supports the company’s strategy of investing in assets that generate long-term, recurring EBITDA, reinforcing financial stability and cash flow visibility.
The scope of the transaction includes:
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More than 2.6 GW of operational installed capacity, comprising:
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1,368 MW from combined-cycle gas and cogeneration plants
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1,232 MW from renewable energy assets
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A 12 GW generation project pipeline, spanning conventional and renewable technologies
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Mexico’s largest private electricity supplier, with:
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Around 25% market share
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Approximately 20 TWh of electricity supplied annually
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Over 500 large corporate and industrial clients
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These assets further position Cox as a key player in Mexico’s energy transition, combining conventional generation, renewable energy and large-scale electricity supply.
From a corporate perspective, the transaction creates significant synergies by reinforcing Cox’s strategy to make Mexico one of its core business hubs in Latin America. This will be achieved through the integration of its water and energy operations, the development of tailored water management solutions for national and local needs, and the provision of competitive power supply to the industrial and commercial sectors.
In addition, Cox will integrate the entire workforce of Iberdrola México—around 700 professionals—ensuring operational continuity and accelerating the identification and execution of new growth opportunities in the country.
