DLA Piper Advises Grupo Cox on US$4.2 Billion Acquisition of Iberdrola Mexico Assets

DLA Piper advised Grupo Cox on the successful completion of its US$4.2 billion acquisition of the Mexico energy business of Iberdrola, together with the related acquisition financing. The transaction is regarded as one of the most significant cross-border energy deals involving Mexico in recent years and marks a transformational expansion for Grupo Cox in the Latin American energy market.

The acquisition includes a large-scale electricity generation and commercialization platform in Mexico, consisting of approximately 2,600 MW of installed operating capacity across renewable and conventional power assets, as well as a renewable energy development pipeline of nearly 12,000 MW. The deal also transfers ownership of Mexico’s largest private electricity supplier, which holds more than 25% market share, commercializes around 20 TWh of energy annually, and serves over 500 major corporate customers. 

Strategically, the acquisition significantly strengthens Grupo Cox’s position as an integrated water and energy utility company with a broader operational footprint in Mexico and Latin America. Grupo Cox stated that the transaction aligns with its long-term strategy to expand in priority growth markets and to integrate power generation, commercialization, and infrastructure capabilities under a unified platform. For Iberdrola, the sale forms part of its broader global strategy of reallocating capital toward regulated electricity grid infrastructure and long-term contracted generation assets, particularly in the United States and the United Kingdom. The transaction also continues Iberdrola’s gradual exit from the Mexican market following previous divestments in the country. 

The financing structure for the transaction included approximately US$2.65 billion in syndicated bank financing from leading international financial institutions, including Citi, Barclays, BBVA, Deutsche Bank, Goldman Sachs, Scotiabank, and Santander. Additional capital support was provided through institutional investors such as Allianz Global Investors, Gramercy, and GMO, alongside equity contributions from Grupo Cox. DLA Piper advised Grupo Cox across all aspects of the transaction, including corporate, financing, regulatory, governance, and cross-border legal matters. The legal team involved more than 75 lawyers across the United States, Mexico, Europe, and Latin America, reflecting the complexity and multinational nature of the transaction.