en.Wedoany.com Reported - Spanish energy group Iberdrola has reached an agreement to acquire Caruna, a leading electricity distribution company in Finland, valuing 100% of the latter's equity at approximately €5 billion, including financial debt.

The transaction involves a payment of €2 billion to acquire an 80% stake in Caruna, while Nordic pension funds AMF and Elo will retain their existing 20% stake. The acquisition is expected to be completed in the first quarter of 2027, subject to customary regulatory approvals for such transactions.

Caruna is the largest electricity distribution operator in Finland, serving 1.5 million people, representing over 20% of the Finnish population. The company's network spans approximately 89,000 kilometers, of which 67% is underground cables, covering areas around central Helsinki, the Joensuu region, and other parts of western and northeastern Finland.

Through this transaction, Iberdrola enters the Finnish market, which has an AA+ credit rating, an attractive regulatory environment, and growth prospects driven by electrification. Caruna's regulatory framework is valid until 2031 and is expected to provide a return on equity of approximately 8%.

The acquisition, coupled with Iberdrola's recent divestiture of its Mexican thermal power plants, further strengthens its strategy of concentrating investments in electricity networks and focusing on stable markets with attractive regulatory regimes. Caruna's earnings and asset base are expected to grow by approximately 7% annually in the coming years, with annual investments between €200 million and €300 million aimed at strengthening and digitizing its grid against the backdrop of growing renewable energy installed capacity. Future investments may also increase due to demand growth, economic electrification, data center expansion, and the development of transmission infrastructure. Since the beginning of 2026, Finnish regulation has allowed electricity distribution companies to undertake such investments.

Iberdrola's Executive Chairman Ignacio Galán stated that this transaction reinforces the company's strategic commitment to viewing electricity networks as critical infrastructure for promoting energy security, self-sufficiency, and competitiveness. He noted that Finland offers high credit quality and a predictable regulatory framework, and that Caruna has strong growth prospects driven by network demand related to new renewable energy generation, demand growth in the industrial and residential sectors, and economic electrification.