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Iberdrola Expands Its Stake in Neoenergia in a Billion-Dollar Deal That Promises to Accelerate Investments in Clean and Efficient Energy Distribution and Transmission in the Country
On Thursday, September 11, 2025, Iberdrola announced the purchase of 30.29% of Neoenergia’s shares held by PREVI (Brazilian Bank Employees’ Pension Fund), consolidating its position as the majority shareholder of the Brazilian subsidiary.
With this deal, Iberdrola now owns 84% of the capital of Neoenergia, strengthening its strategic presence in the energy distribution and transmission sector in Brazil.
The transaction value was €1.88 billion (approximately R$11.95 billion), with an agreed price of R$32.50 per share. The operation is subject to regulatory approvals and is expected to be finalized in the coming months.
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Expansion of Iberdrola in Brazil
The acquisition represents a decisive step in Iberdrola’s strategy to expand its business in regulated markets, especially in the electricity networks sector. Brazil, with its vast territory and growing energy demand, is considered one of the company’s main investment focuses.
With control of 84% of Neoenergia, Iberdrola consolidates its operations in one of the largest energy distribution and transmission markets in Latin America, enhancing its decision-making capacity and strategic planning. The operation also reinforces Iberdrola’s confidence in the Brazilian regulatory environment and the country’s institutional stability.
Profile of Neoenergia: Leadership in Energy Distribution and Transmission
Neoenergia is the largest energy distributor in Brazil by the number of customers, serving around 40 million people in six states: Bahia, Rio Grande do Norte, Pernambuco, São Paulo, Mato Grosso do Sul, and the Federal District.
The company operates:
- 5 regional distributors
- More than 725,000 kilometers of distribution lines
- 8,000 kilometers of transmission lines
- 18 energy transport concessions
- 3,800 MW of renewable generation, primarily hydropower
This robust portfolio positions Neoenergia as a key player in Brazil’s energy infrastructure, playing a relevant role in energy security and the transition to cleaner sources.
Investment in Energy Infrastructure
In 2024, Neoenergia was one of the companies that invested the most in basic infrastructure in Brazil, with investments exceeding R$9.8 billion (about €1.54 billion). The resources were aimed at expanding, renewing, maintaining, and automating the electrical grid, with a focus on operational efficiency and service quality improvement.
The expectation for the coming years is for accelerated growth, driven by encouraging regulatory milestones and the increasing electrification of the Brazilian economy. Iberdrola, through Neoenergia, plans to expand its investments in energy distribution and transmission, with special attention to grid digitalization and the integration of renewable sources.
Operational Excellence of Neoenergia
The excellence of Neoenergia has been recognized by ABRADEE (Brazilian Association of Electric Energy Distributors), which awarded its distributors in various categories:
- Neoenergia Cosern (Rio Grande do Norte): Best company in the sector in the country and in the Northeast region
- Neoenergia Elektro (São Paulo and Mato Grosso do Sul): Best distributor in the Southeast region, best innovation management, and best operational management
- Neoenergia Brasília: Best performance improvement after integration into the Iberdrola group in 2020
These awards reflect the company’s commitment to quality, innovation, and customer service. Efficient management and a focus on sustainable results are pillars of Iberdrola’s operations in all markets where it is present.
Sustainability and Renewable Generation
Neoenergia has a portfolio of 3,800 MW of renewable generation, predominantly from hydroelectric plants. The company also invests in alternative sources, such as solar and wind, aligning with global decarbonization and sustainability goals.
Iberdrola, internationally recognized for its leadership in clean energy, reinforces this commitment by expanding its operations in Brazil, promoting a more sustainable and resilient energy matrix. The integration of storage technologies and intelligent grid management is also on the company’s radar for the coming years.
Impact of Iberdrola’s Acquisition on the Energy Market
The acquisition of PREVI’s stake marks a new phase for Iberdrola in Brazil. With greater control over Neoenergia, the company will be able to accelerate strategic decisions, optimize investments, and expand its operations in energy distribution and transmission.
Moreover, the strengthening of Iberdrola’s presence in the country could attract new investors and stimulate partnerships focused on technological innovation and the modernization of electrical infrastructure. The operation also signals to the international market that Brazil continues to be an attractive destination for long-term investments in the energy sector.
Energy Distribution and Transmission as a Strategic Focus
Iberdrola’s bet on Neoenergia reinforces the importance of the energy distribution and transmission segments as pillars of the company’s global strategy. These segments offer regulatory stability, revenue predictability, and sustainable growth opportunities.
In Brazil, the demand for electricity continues to expand, driven by factors such as urbanization, industrialization, digitalization, and transportation electrification. Neoenergia, with its broad customer base and established infrastructure, is well-positioned to meet this growth and contribute to national energy security.
Iberdrola’s Investment: Long-Term Vision
Iberdrola has demonstrated, over the years, a solid commitment to the development of the Brazilian electricity sector. Since its entry into the country, the company has invested in generation, transmission, and distribution projects, always focusing on innovation, sustainability, and efficiency.
The acquisition of PREVI’s stake is another step in this trajectory, reinforcing Iberdrola’s long-term vision and its confidence in Brazil’s potential as a regional leader in clean energy and modern infrastructure. The company is also engaged in social, educational, and environmental initiatives, broadening its positive impact on the communities where it operates.
What This Movement Represents for the Future of Energy in Brazil
The purchase of 30.29% of Neoenergia’s shares by Iberdrola represents a milestone in the Brazilian energy sector. With an investment of €1.88 billion, the operation consolidates Iberdrola as the majority shareholder of Neoenergia, a leading company in energy distribution and transmission in the country.
This strategic move reinforces Iberdrola’s commitment to sustainable growth, the modernization of the electrical grid, and the expansion of renewable generation. For Brazil, it means more investments, greater efficiency, and advancements in the energy transition.
The operation also highlights the importance of stable and incentivizing regulatory policies that can attract foreign capital and promote the development of the national electricity sector. With Neoenergia under Iberdrola’s majority control, the country gains a strategic partner with global expertise and execution capabilities to tackle the energy challenges of the coming decades.
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