Iberdrola (IBDSF), a Spanish utility focused on electricity distribution networks, has agreed to acquire an 80% stake in Caruna Group, Finland's main electricity distribution network, for 2 billion ($2.3 billion). The transaction supports Iberdrola's strategy of expanding its networks business as electricity infrastructure undergoes a major transformation driven by the transition to low-carbon energy and growing demand from AI data centers. Iberdrola plans to direct roughly two-thirds of its investment between 2025 and 2028 toward electricity distribution networks, suggesting that Caruna could become an important part of the company's longer-term growth strategy.
The acquisition will be completed through the purchase of 80% of Suomi Power Networks MidCo BV, the company that owns all of Caruna's shares. Suomi Power Networks is currently controlled by the Ontario Teachers' Pension Plan, a Canadian pension investor, and funds managed by Kohlberg Kravis Roberts & Co., a private equity firm. Iberdrola will pay approximately half of the purchase price when the transaction closes, while the remaining amount will be paid within 30 months and may be adjusted under customary transaction terms.
Iberdrola's increased focus on regulated networks appears to be producing results, with its profit previously beating estimates following strong performance from its expanded networks operations in the UK and the US. The company described Finland as an attractive investment market because of its high credit quality and favorable regulatory framework. The transaction is expected to close by the end of 2026 or during the first quarter of 2027, potentially giving investors further exposure to Iberdrola's continued expansion in electricity distribution infrastructure.