Iberdrola Acquires Finland’s Largest Electricity Distribution Company at €5 Billion Valuation

Global energy and electricity provider Iberdrola announced the acquisition of an 80% stake in Caruna, the largest electricity distribution company in Finland, in a deal valuing the company at an enterprise valuation of €5 billion.

The transaction marks Iberdrola’s entry into Finland, and follows the launch by the Spain-based energy giant last year of electrification-focused plans to invest €58 billion by 2028, with a focus on transmission and distribution networks.

Caruna is the largest electricity distribution operator in Finland, serving 1.5 million people, with a network extending approximately 89,000 km. According to Iberdrola, the company is expected to increase its earnings and asset base by around 7% annually over the coming years, with annual investments of between €200 million – €300 million to reinforce and digitalize its electricity network in a context of strong growth in renewable capacity. Iberdrola added that the investments could increase beyond these levels, in the future due to growing demand, the electrification of the economy, the expansion of data centers and the development of electricity transmission infrastructure.

KKR and Ontario Teachers’ Pension Plan Board (OTPP) have held an 80% stake in Caruna since 2021. Under the new agreement, Iberdrola will acquire the 80% stake for €2 billion, while current investors AMF and Elo will retain a 20% stake in the company.

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.”

The acquisition is expected to be completed in Q1 2027, subject to regulatory approvals.