Bankinter | The Australian group Fortescue, listed on the Sydney Stock Exchange and with a market capitalisation of more than €30 billion, is negotiating with Iberdrola (IBE) the acquisition of 49% of a 1,000 MW solar and wind portfolio from Iberdrola. This portfolio is valued at least €900 million (including debt).
Bankinter analysis team’s view: Good news and a transaction consistent with the group’s strategy. Iberdrola has been developing this type of transaction (partnership) for several years, consisting of the sale of minority stakes, normally 49%, in renewable energy projects, both in Spain and abroad.
Iberdrola has become the global energy company that is making the most of this partnership model, a formula whereby it brings financial partners into its projects, enabling it to accelerate growth, crystallise asset value and retain control and management. The success of the model also lies in Iberdrola’s ability to choose top-tier partners, creating a kind of cluster of allies with similar values to the company. In addition to Fortescue, Norges, Masdar, the GIC and EIP funds, and the BP and Mapfre groups are already part of this team.
Less than a month ago, Iberdrola closed the sale of 50% of the East Anglia 3 offshore wind project in the United Kingdom to Masdar, the Emirati giant. This alliance is a confirmation of the agreement reached between the two companies at the end of 2023 to co-invest €15 billion in renewable energy in the United States, Germany and the United Kingdom. Two years ago, Iberdrola agreed with Norges, the Norwegian sovereign wealth fund, to sell a minority stake in a portfolio for more than €1.2 billion. In 2024, it also signed a €2 billion joint investment agreement with Norges in Spain and Portugal.
After realising the value of these mature renewable assets, Iberdrola will allocate most of its future investments to networks. Iberdrola has identified investment opportunities in networks totalling €55 billion for the period 2026-2031, which will enable it to reach a regulated asset base (RAB) of €90 billion by 2031. Returns on networks are attractive and highly visible thanks to stable long-term regulatory frameworks (average ROE of 9.5%).
