Iberdrola, after reaching this milestone, expects the operation to close in the coming weeks
MADRID, 16 Feb. (EUROPA PRESS) –
The Plenary Session of the Federal Competition Commission (Cofece) of Mexico has given its approval to the purchase operation of 13 Iberdrola electricity generation plants by the Mexican Government for an amount of 6,000 million dollars (about 5,573 million euros).
In this way, an operation that was announced in April of last year is unblocked and that, in principle, was expected to have been closed before the end of 2023, although the problems in receiving the green light from the competition authority delayed it. .
The approval of the country’s antitrust regulator, subject to compliance with certain conditions customary in this type of process, will not interfere with the closing of this transaction, as announced by the Federal Government of Mexico.
This authorization thus represents the last milestone necessary to close the operation, which Iberdrola expects to occur “in the coming weeks, given that the financing process has already been approved and signed,” company sources reported.
Thus, Iberdrola will foreseeably launch its new strategic plan, which it will announce on the occasion of its Capital Markets Day on March 21, with this operation already closed.
The group chaired by Ignacio Sánchez Galán will sell to the state company Mexico Infrastructure Partners with financing from the Mexican National Infrastructure Fund (Fonadin) more than 8,400 megawatts (MW) of gas combined cycles – which represent 55% of the business in the country – for 6 billion dollars.
The agreement sealed in April of last year between Galán and the President of the Government of Mexico, Andrés Manuel López Obrador, thus opened a new stage in the relationship between the energy company and the Government of the country.
Specifically, the divestment operation included the gas combined cycles, which operate under the regime of Independent Energy Producers contracted with the Federal Electricity Commission (CFE) in Monterrey I and II, Altamira III and IV, Altamira V, Escobedo, La Laguna, Tamazunchale I, Baja California, Topolobampo II and Topolobampo III, together with the La Venta III wind asset, which represents 87% of the total installed capacity to be divested, and the private gas combined cycles of Monterrey III and IV, Tamazunchale II and Enertek.
Iberdrola confirms its commitment to Mexico, reaffirming its leadership as the main private generator of renewable energy with the support of the Federal Government to continue operating its assets under market conditions and promote the energy transition in the country. In fact, the energy company has a portfolio of 6,000 MW of renewable energy in the country.
In addition, the company thanked “the support and flexibility shown by the Government of Mexico to reach this agreement”, while considering Mexico “a strategic country with potential for growth and expansion where it will show its support for Mexico and the State by developing renewable capacity”.
In a statement, Cofece indicated that compliance with these conditions “will guarantee that economic competition in the electricity generation market is not affected.”
Among other conditions, Cofece establishes that the buyers of the plants will be obliged to operate them independently in the market, and avoid exchanges of sensitive or strategic information between competitors.
In addition, the National Infrastructure Fund (Fonadin) must reduce and maintain its investment by a maximum of 51%, which must be completed within a maximum period of 24 months.
Also, among these conditions, an independent professional administrator must be assigned, who will be in charge of making decisions related to the operation of the electricity generation plants in the market and controls and mechanisms will be established that bind the people in charge of the operation. of electricity generation plants to act independently and without conflict of interest.
