Spain's Cox may buy Iberdrola's energy units in Mexico

Post by : Monika

Photo: Reuters

In late July 2025, Cox Energy, a Spanish company that works in clean energy and water services, said it is thinking about buying energy assets in Mexico from another Spanish company, Iberdrola. This was shared by Cox Energy’s CEO, Nacho Moreno, during a press meeting. Cox wants to grow its business by buying other companies' assets, and Mexico is one of the main countries it wants to focus on.

Why Mexico?
Cox believes Mexico is an important country for expanding its business. The energy market in Mexico is growing, and Cox sees a good chance to become stronger there. Iberdrola, one of the biggest power companies in the world, owns several power plants in Mexico, including:

• Six wind farms
• Three solar energy parks
• Some gas and cogeneration power stations

These are already built and running, which makes them attractive for any company looking to expand quickly.

Background on Iberdrola
Iberdrola has been slowly leaving the Mexican energy market. In 2023 and 2024, the company sold more than half of its energy business in Mexico to the Mexican government. This sale was part of a bigger plan to change its business focus. Now, Iberdrola is planning to spend more money upgrading its energy networks in countries like the United Kingdom and the United States.

While Iberdrola has not officially said that it wants to sell the rest of its plants in Mexico, Cox Energy believes these assets might soon be available. The company is studying the plants and thinking about making a full offer.

How Much Is Cox Offering?
Cox Energy is reported to be preparing a bid of around €4 billion, which is about $4.6 billion. If the deal goes through, it would be one of the biggest deals in Cox’s history and would help the company grow much faster in Latin America.

Buying these energy assets would give Cox a mix of different energy types—wind, solar, and gas. This would make Cox stronger and more flexible because it would be able to offer power from different sources, depending on weather and demand.

What Cox Stands to Gain
If this deal happens, Cox Energy could enjoy several major benefits:

Fast Growth: Instead of building new wind or solar farms from scratch, Cox can take over existing ones that are already working. This saves time and gives the company a stronger place in the market quickly.

Energy Mix: Having wind, solar, and gas all together helps Cox manage power supply better. For example, when there is no sun or wind, the gas plants can still make electricity.

More Influence in Mexico: This deal would help Cox become a bigger name in the Mexican energy world. It would also give the company a strong base for future growth in Latin America.

Support for Clean Energy Goals: As the world moves toward greener energy, this deal helps Cox play a bigger role in clean energy, which includes wind and solar power.

What Could Go Wrong?
Even though this sounds like a good plan, there are a few things that could make the deal harder or even stop it:

No Confirmation from Iberdrola: So far, Iberdrola has not said officially that it wants to sell the rest of its plants in Mexico. In fact, the company has called news reports about its plans “just rumors.”

Legal and Tax Rules: Mexico has had changes in rules for energy companies before. There are still questions about how stable these rules are and whether they will change again. This makes things risky for companies wanting to invest large amounts of money.

Money Issues: €4 billion is a lot of money, even for a company like Cox. It is not clear yet how the company plans to pay for it—whether by loans, investors, or selling other things.

Why This Deal Matters in the Bigger Picture
This possible deal is important not just for Cox and Iberdrola but for the future of clean energy in Mexico and Latin America. Here’s why:

Mexico's Changing Energy Policies: In the last few years, the Mexican government has been buying back energy assets from private companies. This shows a shift in how the country wants to manage its power sector—less privatization, more government control.

Iberdrola's New Strategy: Iberdrola is turning its attention to Western markets, where it plans to improve electric grids. By stepping back from Mexico, it is making space for others, like Cox, to move in.

Cox’s Growth Plan: Cox Energy has a clear plan to grow by buying already working energy businesses in other countries. This makes it easier and quicker for them to expand compared to building from zero.

What’s Next?
As of now, the deal is still under discussion. No final agreement has been signed, and many things still need to be checked. These include how the deal will be funded, what the rules in Mexico allow, and whether Iberdrola is ready to sell.

Cox will also need to work with the Mexican government, which has shown interest in keeping more control over energy assets. This could make the talks longer and more complex.

Past Deal to Remember
It is worth noting that in 2023 and 2024, Iberdrola already sold a large part of its Mexican assets to the government. That deal was worth about $6 billion. Now, the remaining plants that Cox wants to buy are part of what’s left.

This is a bold move by Cox Energy. If it goes through, the company could become a strong player in Latin America’s clean energy market. The deal fits well with Cox’s larger goal to grow by buying already existing clean energy systems in other countries.

But big moves come with big risks. The legal situation in Mexico, the lack of a firm agreement from Iberdrola, and the large amount of money involved all make this a challenging deal. Still, if things go well, Cox could come out much stronger and play a bigger role in the clean energy world.

As of now, the talks are still going on. Everyone is watching to see what happens next.