Spain’s Iberdrola SA has agreed to sell gas-powered assets and a wind farm valued at $6 billion to Mexico Infrastructure Partners.
(Bloomberg) — Spain’s Iberdrola SA has agreed to sell gas-powered assets and a wind farm valued at $6 billion to Mexico Infrastructure Partners.
The sale involves 8,539 megawatts of energy: 8,436 from a portfolio of gas plants and 103 from wind, according to a company statement. The transaction is subject to regulatory approvals.
The deal comes after Spain’s biggest power company has gradually scaled back its Mexico operations after having previously invested tens of billions of dollars in the country. The company has faced significant hurdles under the nationalist President Andres Manuel Lopez Obrador, or AMLO, who has made Iberdrola the main target of his push to remove the influence of foreign energy firms in the electricity sector.
Read More: Mexico’s AMLO Puts $22 Billion in Energy Contracts at Risk
AMLO has launched bitter verbal attacks against the Spanish energy giant at his daily morning press conferences, accusing it of mounting a media campaign against him and engaging in unspecified acts of corruption. Iberdrola’s operations have stalled due to permitting issues, cancellation of contracts and supply problems with the state utility.
(Updates with additional background in fourth paragraph.)
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