By Pietro Lombardi
MADRID (Reuters) -Spanish water and renewable energy company Cox is considering buying Iberdrola’s assets in Mexico, CEO Nacho Moreno told Reuters on Wednesday, as part of the company’s strategy to pursue growth through acquisitions.
“What I can tell you is that it’s true they are running a process to sell their Mexican business,” Moreno said in an interview.
“It’s true that that business is absolutely amazing. And it’s true that we’re looking into that business as much as we are looking into some other businesses.”
Moreno added that Cox regarded Mexico as “one of our strategic regions”.
Iberdrola did not immediately reply to a request for comment on Wednesday. The company controls six wind parks and three solar parks in Mexico, according to its website, as well as other power plants including gas and cogeneration.
Earlier this week, Spanish newspaper El Confidencial reported that Cox had put forward an offer worth around 4 billion euros ($4.62 billion) for the Mexican assets.
Iberdrola Executive Chairman Ignacio Sanchez Galan said last week reports of a possible sale were rumours, and declined to comment during the presentation of the company results and a 5 billion euro capital increase.
In 2023, Iberdrola agreed to sell $6 billion worth of assets in Mexico – mostly gas-fired power plants – and is focusing on building and upgrading power grids in countries including Britain and the United States.
DEALS AND INVESTMENTS
Cox is seeking growth in its water and renewable energy division and to this end will boost investments in coming years and buy assets, Moreno said.
“Within that division, growth should come from inorganic opportunities as well as organic,” he said. “And I would rather bet on inorganic.”
It is analysing the potential acquisition of a couple of water desalination plants in the north of Africa, Moreno said.
Cox plans to invest at least 600 million euros this year and increase investments to around 1 billion euros a year in 2026 and 2027.
The company posted a profit of 13 million euros for the first six months of the year, a 71% increase from a year earlier when excluding one-offs last year. Revenue rose 62% in the same period.
($1 = 0.8656 euros)
(Reporting by Pietro Lombardi, editing by Inti Landauro, Barbara Lewis and Jan Harvey)
