Finance
Iberdrola raises stake in Brazil's Neoenergia to 84% for $2.2 billion
Published by Global Banking & Finance Review®
Posted on September 11, 2025
1 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 11, 2025
1 min readLast updated: January 21, 2026
Iberdrola has increased its stake in Brazil's Neoenergia to 84% for $2.2 billion, reinforcing its focus on stable electricity networks.
(Reuters) - Spanish power utility Iberdrola has bought a 30.29% stake in its Brazilian business Neoenergia from Brazil's Previ pension fund for 11.95 billion reais ($2.21 billion), it said on Thursday.
The acquisition increases Iberdrola's stake in Neoenergia to 83.8%, it said. Neoenergia is Brazil's largest power utility in terms of customers.
The deal is a new step in Iberdrola's growth strategy based on the electricity networks business, in which it has 1.4 million kilometres (870,000 miles) of power lines in the U.S., Britain, Brazil and Spain, Iberdrola added.
Like other utilities, Iberdrola has focused on grid investments as it seeks steady returns.
JP Morgan analysts contrasted the Brazil deal with Iberdrola's decision to dispose of its Mexican assets for $4.2 billion. Iberdrola exited Mexico on concerns about the legal and tax stability.
"The company strengthens its position in a core country and exits a country where growth potential was questionable," the analysts said in a note.
(Reporting by Javi West Larrañaga; Editing by David Goodman, Inti Landauro and Helen Popper)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control. Acquisitions can help companies expand their market reach or diversify their offerings.
A stake in a company refers to the ownership interest that an individual or entity has in that company, usually represented by shares. A higher stake indicates greater control and influence over company decisions.
A pension fund is a type of investment fund that collects and invests money to provide retirement income for its members. It is typically managed by a financial institution on behalf of employees.
Market strategy refers to a company's plan to reach its target customers and achieve competitive advantage. This includes identifying target markets, positioning, and marketing tactics.
Grid investment involves funding infrastructure projects related to electricity transmission and distribution systems. It aims to enhance the reliability and efficiency of power supply networks.
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