Iberdrola has signed an agreement to sell more than 8,400 MW of their combined cycle gas operations in Mexico for approximately USD 6 billion. Iberdrola Mexico and Mexico Infrastructure Partners (MIP) have signed a MOU, whereby the trust led and managed by MIP will acquire 8,539 MW of installed capacity. Of the total, 103 MW corresponds to wind and 8,436 MW corresponds to combined cycle gas. The company continues to be the main private generator of renewable energy in Mexico and this operation aligns with their decarbonization commitments.

The agreed value for the sale amounts to approximately USD 6 billion, could be modified later on based on the closing date of the transaction and other adjustments. Now, the transaction is subject to the agreement and the signing of final contracts by the parties, as well as obtaining the necessary regulatory approvals and the fulfilment of several conditions that are standard in this kind of transaction. The operation has the financial support of the National Infrastructure Fund of Mexico (Fonadin) and other public financial entities related to the Government of Mexico.

The Baker McKenzie team advising Iberdrola was led by Partners Antonio Morales and Juanjo Corral in Madrid, José A. Morán and Lewis Popoff in Chicago, Reynaldo Vizcarra-Méndez and Lorenzo Ruiz de Velasco in Mexico.

Commenting on this transaction, Antonio Morales, head of the Madrid’s EMI group and José A. Morán, global chair of the Firm’s EMI group stated: “We are proud to have assisted Iberdrola through this strategic business transaction with the public entity Mexico Infrastructure Partners. This deal demonstrates our unparalleled strength in delivering complex transactions for our clients across multiple geographies. Our most sincere congratulations to Iberdrola for achieving another strategic business goal for the corporation.”