Iberdrola acquires 80% of Caruna

Iberdrola has agreed to acquire an 80% equity stake in Caruna, Finland's largest electricity distribution company, for €2 billion, valuing 100% of Caruna at approximately €5 billion including debt. Nordic pension funds AMF Tjanstepension och AMF Fonder and Elo will retain their combined 20% interest. Caruna serves about 1.5 million people (over 20% of Finland's population) with 89,000 km of network, 67% underground. The acquisition marks Iberdrola's entry into Finland, a market with AA+ credit rating and a regulatory framework through 2031 offering ~8% return on equity. Caruna is expected to invest €200-300 million annually to strengthen and digitalize its network, with earnings and asset base projected to grow ~7% annually. The deal aligns with Iberdrola's strategy to focus on regulated networks in stable markets, following its divestment of thermal plants in Mexico. Completion is expected in Q1 2027, subject to regulatory approvals. Iberdrola also reported H1 2026 net profit of €4.34 billion, up 22%, with investments up 25% to €7 billion.