Iberdrola strengthens its dominance in Brazil with the acquisition of PREVI's stake in Neoenergia.

 

With this transaction, the Spanish company will now control approximately 84% of the share capital of its Brazilian subsidiary.

 

The deal, valued at approximately €1.880 billion (equivalent to R$11.950 billion), closed at a price of R$32,5 per share. The acquisition is still subject to regulatory approval, and the process is expected to close in the coming months.

 

neoenergy, a fundamental pillar of Iberdrola's strategy, is a key player in Brazil's energy sector. The company supplies electricity to nearly 40 million people through five distributors operating in the states of Bahia, Rio Grande do Norte, Pernambuco, São Paulo, Mato Grosso do Sul and Brasilia. Its vast infrastructure includes more than 725.000 kilometers of distribution lines and 8.000 kilometers of transmission lines. It also has 3.800 MW of renewable generation, primarily hydroelectric, underscoring its commitment to the energy transition.

 

In 2024, Neoenergia stood out as the company that invested the most in basic infrastructure in the country, allocating more than 9.800 billion reais (1.540 billion euros) to the expansion, renovation, and automation of its grid.

 

 

With this transaction, Iberdrola strengthens its global expansion strategy, focused on the electricity grid business.

 

 

 

The company's operational excellence has been recognized on multiple occasions. Recently, two of its subsidiaries, Neoenergia Cosern and Neoenergia Elektro, received top honors at the awards of the Brazilian Association of Electric Power Distributors (ABRADEE), Neoenergia stood out as the "Best Company" in the sector. In total, Neoenergia won eight of the twelve awards for which it was nominated, reflecting its leadership in management quality, innovation, and operational performance.

 

Network-focused growth strategy

 

With this transaction, Iberdrola strengthens its global expansion strategy, focused on the electricity grid business. The company manages a total of 1,4 million kilometers of distribution lines in key markets such as United States, United Kingdom, Brazil and SpainThe acquisition of a majority stake in Neoenergia allows it to capitalize on projected growth in the Brazilian market, driven by investments in regulated networks and regulatory frameworks that foster development.

 

This consolidation of control over its Brazilian subsidiary positions Iberdrola to capitalize on the strong growth expected in the region's energy sector, reaffirming its long-term vision and commitment to the Brazilian market.