Iberdrola will acquire an 84% stake in its Brazilian subsidiary following the purchase of its partner PREVI's stake for €1.88 billion

Iberdrola has reached an agreement to acquire the shareholding of Caixa de Previdência dos Funcionários do Banco do Brasil (‘PREVI’) in Neoenergia, consolidating its position as the majority shareholder. The transaction involves the purchase of PREVI's 30.29% stake in Neoenergia, giving Iberdrola control of approximately 84% of the company's share capital.

The agreed price of 32.5 reais per share will involve a disbursement of 11.95 billion Brazilian reais – approximately 1.88 billion euros.

The transaction is subject to the relevant regulatory approvals and is expected to be completed in the coming months.

Neoenergia supplies electricity to around 40 million Brazilians through five distributors (in the states of Bahia, Rio Grande do Norte, Pernambuco, Sao Paulo, Mato Grosso do Sul and Brasilia) and 18 transmission lines, making it the country's leading distribution group in terms of number of customers. Neoenergia has more than 725,000 kilometres of distribution lines and 8,000 kilometres of transmission lines and has 3,800 MW of renewable generation, mainly hydroelectric.

In 2024, Neoenergia became the company that allocated the most funds to basic infrastructure throughout the country, thanks to investments of more than R$9.8 billion (€1.54 billion) to expand, renovate, maintain and automate its network.

In the coming years, the company faces strong growth prospects thanks to the expected increase in investments in regulated networks with incentive regulatory frameworks.

The operational excellence of Neoenergia's distributors was recently reflected in the awards given by ABRADEE, the country's association of distributors, in which two of its companies (Neoenergia Cosern, in Rio Grande do Norte, and Neoenergia Elektro, in São Paulo and Mato Grosso do Sul) came first and second in the ‘Best Company’ category. In total, Neoenergia won eight of the 12 awards for which it was nominated: ‘Best Company’ in the sector for the country as a whole and the northeast region (won by Neoenergia Cosern, the distributor in Rio Grande do Norte); Best Distributor in the Southeast, Best Management Quality, Best Innovation Management and Best Operational Management (awarded to Neoenergia Elektro) and Best Performance Evolution (awarded to Neoenergia Brasilia, recognising the significant improvement in its operations following its integration into the Group in 2020).

With this operation, Iberdrola takes a new step in its growth strategy based on the electricity network business, in which it has 1.4 million kilometres of lines in the United States, the United Kingdom, Brazil and Spain.