Iberdrola acquires Finland's Caruna in €5 billion deal

Iberdrola has agreed to acquire Caruna, Finland's largest electricity distribution company, in a deal valuing the business at around €5 billion ($5.7 billion), including debt, marking the Spanish energy group's first investment in the Finnish electricity market.

Under the agreement, Iberdrola will acquire an 80% equity stake in the network operator for €2 billion ($2.3 billion), while existing shareholders AMF and Elo, two Nordic pension funds, will retain the remaining 20%.

The acquisition is expected to complete during the first quarter of 2027, subject to the necessary regulatory approvals.

Caruna supplies around 1.5 million customers, equivalent to more than 20% of the country's population. The company manages approximately 89,000km of electricity distribution infrastructure, 67% of which has been installed underground to improve network resilience.

Rising demand

Its distribution licences cover areas surrounding central Helsinki, the Joensuu region and parts of western and north-eastern Finland. These regions are expected to see increasing electricity demand as industrial activity expands, residential development continues and investment in data centres accelerates.

The acquisition forms part of Iberdrola's wider strategy of increasing investment in regulated electricity networks, which the company views as a key driver of long-term growth.

Announcing the acquisition, Iberdrola’s executive chairman, Ignacio Galán, said: “This transaction reinforces our strategic commitment to electricity networks as essential infrastructure for promoting energy security, self-sufficiency and competitiveness. 

"Finland offers high credit quality and a predictable and attractive regulatory framework, while Caruna has strong growth prospects due to the need for networks linked to new renewable generation, rising demand from the industrial and residential sectors and the electrification of the economy.”

Financial growth

The Caruna news came just ahead of Iberdrola announcing its H1 2026 results, where it reported a 22% increase in reported net profit to €4.34 billion ($5 billion). The increase was driven by continued investment in electricity networks across the UK, the USA and Brazil, alongside gains from the sale of thermal power assets in Mexico.

Adjusted net profit, excluding capital gains from the sale of the Mexican plants rose 8%, or 14% excluding foreign exchange impacts. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 7% to €8.05 billion ($9.2 billion), driven by a 13% rise in Networks earnings, while Power and Customer EBITDA grew 1%.

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Capital expenditure increased 25% to €7 billion ($8 billion), with over 70% directed towards the UK, USA and Brazil. Electricity networks accounted for nearly €4.4 billion ($5.3 billion) of the total, up 42%, as Iberdrola’s regulated asset base grew 11% to €55 billion ($63 billion). This included growth of 11% in the UK, 12% in the US and 18% in Brazil, with transmission assets increasing 30% over the past year.

Generation investment

The group also invested more than €2.2 billion )$2.5 billion) in generation, predominantly in onshore and offshore wind, and installed more than 1.6GW of new capacity during the period. A further 2.1GW is expected to be commissioned by December, while Iberdrola now has mature projects capable of adding up to 15.5GW between 2025 and 2030.

Liquidity stood at €21.5 billion ($25 billion), covering 22 months of financing requirements, while dividends for the 2025 financial year increased 12% to €4.5 billion, equivalent to €0.685 per share.

Of the total regulated asset base, approximately €40 billion ($46 billion) relates to electricity distribution assets, while €15 billion ($17 billion) is tied to transmission infrastructure. Transmission assets have grown by around 30% over the past year, reflecting the company's increasing emphasis on high-voltage grid investment.

Looking ahead, Iberdrola reaffirmed its expectation of delivering adjusted net profit growth comfortably above 8% for the full year, supported by continued expansion of its regulated electricity networks, additional renewable generation capacity and operational efficiency improvements, including wider use of AI across the business.