Spain's Cox buys Iberdrola's Mexican assets in $4.2 billion deal

By Pietro Lombardi

MADRID (Reuters) -Spanish water and renewable energy company Cox has agreed to buy Iberdrola's assets in Mexico in a deal valuing the business at $4.2 billion including debt, the companies said on Thursday.

The deal is part of Cox's strategy to pursue growth through acquisitions, while it strengthens Iberdrola's financial muscle as it prepares to invest 55 billion euros ($63 billion) in power grids in the next six years, primarily in Britain and the United States.

Iberdrola controls six wind parks and three solar parks in Mexico, according to its website, as well as other power plants including gas and cogeneration.

Cox shareholders still need to approve the acquisition, and reference shareholders representing 84% of its capital have already granted their support.

In 2023, Iberdrola agreed to sell $6 billion worth of assets in Mexico - mostly gas-fired power plants.

On Wednesday, Cox CEO Nacho Moreno told Reuters that the company was considering buying Iberdrola's Mexican business, calling it "absolutely amazing" and saying that Cox regarded Mexico as "one of our strategic regions".

($1 = 0.8754 euros)

(Reporting by Pietro Lombardi; Editing by Andrei Khalip)