Reported by the Consejeros Editorial Team
Iberdrola has signed a sale and purchase agreement with Suomi Power Networks, controlled by the Ontario Teachers’ Pension Plan (Canada) and the KKR fund, for the acquisition – direct or indirect – of 80 per cent of the share capital of the company that holds 100 per cent of the shares in two Finnish concessionary companies, “Caruna Oy” and “Caruna Espoo Oy”, which together constitute the leading electricity distribution operator in Finland. The Nordic pension funds AMF and Elo will retain the remaining 20 per cent.
There is a consensus among market analysts that this sale and purchase transaction is in line with Iberdrola’s strategy of increasing its position in regulated networks.
The valuation attributed to 100 per cent of the Caruna Group, in terms of enterprise value (including net financial debt), is approximately €5 billion, and will involve a total outlay by Iberdrola for 80 per cent of its share capital of €2.014 billion as the purchase price, comprising a payment of around €1.014 million on the date the transaction is completed and a deferred payment of approximately €1.000 million, to be paid within 30 months of closing, subject to the usual adjustments in this type of transaction.
According to experts at Divacons, “the transaction recycles the funds obtained from the sale of its thermal power assets in Mexico, which was completed in April 2026, despite the fact that the purchase price is not particularly favourable”.
The transaction has been agreed on standard market terms and is subject to the conditions precedent typical of this type of transaction, including, amongst others, obtaining third-party approvals and the relevant regulatory authorisations regarding foreign investment in Finland, foreign subsidies and merger control by the European Commission (EC).
Iberdrola expects the transaction to be completed by the end of 2026 or during the first quarter of 2027.
