Spanish utility Iberdrola has agreed to acquire Finland’s largest electricity distribution company, Caruna, in a deal valuing the business at about €5 billion euros, including debt, as it expands its regulated power networks business.
Iberdrola said on Tuesday that the transaction will involve a payment of €2 billion for 80% of the company’s equity, while Nordic pension funds AMF and Elo will retain their current 20% stake.
The acquisition marks Iberdrola’s entry into the Finnish market and is expected to close in the first quarter of 2027, subject to regulatory approvals.
Caruna serves around 1.5 million people, more than one-fifth of Finland’s population, through an electricity distribution network spanning about 89,000 kilometers, around two-thirds of which is underground.
“The acquisition, together with the recent divestment of thermal power plants in Mexico, reinforces Iberdrola’s strategy of focusing its investments on the networks business in stable markets with attractive regulatory regimes: Finland has an AA+ credit rating and a regulatory framework in place until 2031 that offers a return on equity of around 8%,” the company said.
