Iberdrola Strengthens Brazilian Presence with Full Control of Neoenergia after PREVI Stake Acquisition
Iberdrola, one of the world’s largest energy companies and a global leader in renewable power, has successfully completed the acquisition of Caixa de Previdência dos Funcionários do Banco do Brasil (PREVI)’s 30.29% stake in Neoenergia. With this strategic transaction, Iberdrola now controls approximately 84% of Neoenergia’s share capital, consolidating its position as one of the most significant energy players in the Brazilian market and reaffirming its long-term commitment to sustainable growth in Latin America.
The acquisition, which was executed at a price of 32.5 Brazilian reais per share, involves a total outlay exceeding €1.92 billion (equivalent to 11.95 billion reais). This valuation reflects both Neoenergia’s robust performance in recent years and its strategic importance within Iberdrola’s global portfolio. The agreement, reached on September 10, 2025, follows years of successful partnership between Iberdrola and PREVI, Brazil’s largest pension fund. Both entities have collaborated closely in managing and expanding Neoenergia, fostering a relationship of mutual trust and cooperation that has now culminated in this landmark transaction.
All necessary regulatory approvals have been obtained in accordance with Brazilian and international financial regulations governing mergers and acquisitions of this scale. The completion of this deal marks a pivotal moment for Iberdrola’s Latin American operations, as it strengthens its control over one of Brazil’s most diversified and essential energy companies.
Neoenergia stands as Brazil’s leading electricity distribution group, serving nearly 40 million people across several major regions. The company operates through five distribution subsidiaries located in the states of Bahia, Rio Grande do Norte, Pernambuco, São Paulo, and Mato Grosso do Sul, as well as in the capital city of Brasília. Its extensive network includes over 725,000 kilometers of distribution lines and approximately 8,000 kilometers of transmission lines, ensuring reliable and efficient power delivery across urban and rural areas alike.
Beyond distribution, Neoenergia has established itself as a major force in Brazil’s renewable energy sector. The company boasts an installed renewable generation capacity of about 3,800 megawatts (MW), primarily derived from hydroelectric sources. It has also been expanding its footprint in wind and solar power, aligning with Iberdrola’s global objective of achieving carbon neutrality and promoting the energy transition.
By acquiring PREVI’s stake, Iberdrola not only consolidates its majority ownership but also enhances its ability to implement an integrated strategic vision across Neoenergia’s diverse business segments. The move underscores Iberdrola’s confidence in Brazil’s long-term energy prospects and its role as a central hub for renewable investments in South America.
Brazil has long been one of Iberdrola’s priority markets, alongside the United States, the United Kingdom, and Spain. With this acquisition, Iberdrola reinforces its grid and generation portfolio in the region, complementing its 1.4 million kilometers of electricity networks distributed across its global operations. This scale provides Iberdrola with a unique advantage in developing smart grid technologies, integrating renewable sources, and improving energy efficiency.
The transaction also aligns with Iberdrola’s global investment strategy focused on expanding its regulated networks and clean energy generation. In recent years, the company has pursued a disciplined capital allocation model, directing resources toward infrastructure assets that provide stable returns and contribute to decarbonization. The Neoenergia acquisition fits perfectly into this framework, enabling Iberdrola to strengthen its leadership in one of the fastest-growing electricity markets in the world.
Ignacio Galán, Chairman and CEO of Iberdrola, emphasized the strategic significance of the transaction, noting that Brazil remains one of the company’s “most important pillars for sustainable growth.” He highlighted that Neoenergia’s broad operational base, experienced workforce, and commitment to renewable development make it an essential part of Iberdrola’s global mission to deliver cleaner, smarter, and more reliable energy.
Under Iberdrola’s strengthened leadership, Neoenergia is expected to accelerate its modernization efforts. This includes the expansion of smart meters, the digitalization of grid operations, and increased investments in grid resilience to better serve millions of customers in a country characterized by both rapid urbanization and significant geographic diversity. Additionally, Iberdrola plans to leverage Neoenergia’s strong regional presence to deploy more renewable energy projects, particularly in wind and solar, supporting Brazil’s energy transition and economic growth.
The acquisition also enhances Iberdrola’s position in Latin America’s evolving energy landscape. As countries across the region pursue greater electrification and renewable integration, Iberdrola’s control of Neoenergia provides a platform for continued investment and innovation. Through this move, the company strengthens its contribution to regional sustainability goals while maintaining financial discipline and shareholder value creation.
In recent years, Neoenergia has demonstrated consistent operational excellence, maintaining high reliability standards and strong financial results despite global market volatility. The company’s efforts in expanding access to electricity, improving customer service, and implementing renewable projects have earned it recognition as a model for sustainable utility management in Brazil. Iberdrola’s expanded ownership is likely to further enhance these achievements through greater capital resources, advanced technological expertise, and an increased focus on digital transformation.
As Iberdrola continues to drive forward its global growth strategy, the full consolidation of Neoenergia represents a major milestone in its mission to lead the global energy transition. By strengthening its footprint in Brazil—a country with vast renewable potential and growing demand for clean electricity—Iberdrola positions itself at the forefront of a new era of sustainable infrastructure development.
With this acquisition, Iberdrola not only deepens its commitment to Brazil but also reaffirms its broader vision: building a global, integrated energy network that delivers value to customers, investors, and society, while contributing to a decarbonized and resilient future.
Source Link: https://www.iberdrola.com/
