Iberdrola to buy majority stake in Finnish power distributor Caruna

Spanish energy giant Iberdrola has agreed to acquire an 80% stake in Caruna, Finland's largest electricity distribution network operator, in a deal valuing the company at approximately €5 billion including debt. Iberdrola will pay €2 billion for the majority stake, while Nordic pension funds AMF and Elo will retain the remaining 20%. Caruna operates around 89,000 km of network, with two-thirds underground, and supplies electricity to 1.5 million people, over a fifth of Finland's population. The acquisition, expected to close in Q1 2027 pending regulatory approvals, aligns with Iberdrola's strategy to invest in stable markets with predictable regulatory frameworks. Finland's current regulation, effective until 2031, offers a regulated return on equity of about 8%. Iberdrola projects annual growth of around 7% in earnings and asset base from the deal, with planned yearly network investments of €200-300 million. The move follows Iberdrola's recent €3.41 billion sale of its Mexican thermal power plants.