Following the auction process related to the takeover bid launched on 24 November—carried out as a standard procedure for this type of transaction in Brazil—Iberdrola has agreed to acquire an additional 14.2% stake in its Brazilian subsidiary Neoenergia, taking its total ownership to 98%. The offer price was set at 33.77 Brazilian reais per share, resulting in a total transaction value of approximately €980 million, equivalent to around 5.826 billion Brazilian reais. This valuation aligns with the pricing framework used in Iberdrola’s earlier acquisition of a 30.29% stake from PREVI, adjusted for Brazil’s official interest rate (SELIC) and net of the special dividend distributed by Neoenergia on 31 December 2025.
The structure reflects a continuation of Iberdrola’s disciplined valuation approach in consolidating its Brazilian operations. There remains the possibility that Iberdrola could reach 100% ownership of Neoenergia before the end of the second quarter of 2026, should the Brazilian company exercise its statutory squeeze-out rights. If completed, this would result in full delisting of Neoenergia from the market. The transaction is notable as one of the largest delisting operations in Brazil in recent years and has also recorded one of the highest acceptance rates in the country.
The deal was executed at attractive valuation multiples and is expected to have a positive impact on Iberdrola’s financial results from the first year following completion. It also reinforces the company’s long-term strategic commitment to Brazil, particularly in regulated electricity networks, which represent around 90% of Neoenergia’s business model. Neoenergia is one of Brazil’s largest electricity utilities, supplying power to approximately 40 million people. Its operations span five distribution companies located across the states of Bahia, Rio Grande do Norte, Pernambuco, São Paulo, Mato Grosso do Sul, and the federal district of Brasília.
The company also operates extensive transmission infrastructure, including around 18 transmission lines, and is recognised as the country’s leading distribution group by customer base. Overall, Neoenergia manages more than 725,000 kilometres of electricity distribution networks and approximately 8,000 kilometres of transmission lines. In addition to its grid operations, the company has around 3,600 MW of installed renewable generation capacity, primarily from hydroelectric assets, reinforcing its position within Brazil’s evolving energy mix.
This latest transaction adds to a series of strategic portfolio moves by Iberdrola over the course of the year. These include the acquisition of the Ararat wind farm in Australia, the sale of its onshore generation business in France, divestments of small hydroelectric and slurry assets in Spain, the sale of its operations in Hungary, and the addition of 650 MW of solar capacity through a joint venture with Norges Bank Investment Management. Together, these transactions highlight Iberdrola’s ongoing strategy of portfolio optimisation, increased focus on regulated networks, and selective investment in large-scale renewable energy assets across key international markets.
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