Iberdrola acquires 80% of Finland's largest electricity distributor Caruna for €5 billion

Iberdrola has agreed to acquire an 80% stake in Caruna, Finland's largest electricity distribution company, in a deal valuing the firm at approximately €5 billion (including debt). The Spanish utility will pay around €2 billion for the stake, with about half deferred for 30 months after closing. Source: ABC.es, El Mundo

Strategic context

The acquisition, financed partly by the recent sale of Mexican thermal assets, aligns with Iberdrola's strategy to invest in regulated networks in stable, high-credit markets. Finland boasts an AA+ credit rating and a regulatory framework offering a ~8% return on equity through 2031. Source: El Confidencial, La Vanguardia

Deal details

• Caruna serves 1.5 million people (over 20% of Finland's population) via an 89,000 km network, 67% underground. Source: Infobae
• The sellers are KKR and Ontario Teachers, each holding 40%; Finnish pension funds AMF and Elo will retain their combined 20% stake. Source: El Confidencial
• The transaction is expected to close in Q1 2027, pending regulatory approvals. Source: ABC.es

Outlook