Iberdrola agreed on 21 July to buy an 80% stake in Caruna, Finland's largest electricity distribution company, in a deal valuing it at about €5bn including debt.
Why Iberdrola SA is buying Caruna
The acquisition marks Iberdrola's entry into Finland and fits its strategy of concentrating investment in regulated networks. Iberdrola expects Caruna's earnings and asset base to grow by about 7% a year, with annual investment of €200m to €300m to reinforce and digitalise the grid as renewable capacity and electricity demand grow.
Deal terms and financing
Iberdrola will pay about €2bn for the 80% stake held equally by KKR and Ontario Teachers' Pension Plan, roughly half at completion and the remainder deferred for up to 30 months. Pension insurer Elo (7.5%) and AMF (12.5%) keep their holdings.
Regulatory approvals and timing
The deal needs Finnish foreign investment clearance, foreign subsidies approval and EU merger control, and is expected to complete in the first quarter of 2027.
Market context
Caruna serves about 1.5 million people through a network of about 89,000 km. KKR and Ontario Teachers' have owned their stakes since 2021. The sale drew criticism from some Finnish opposition politicians, who called for the grid to return to domestic ownership.
