Iberdrola to Lift Neoenergia Stake to 84% After Buying Previ’s Holding

By Brazil Stock Guide – Iberdrola SA (BME: IBE) agreed to buy the 30.29% stake in Neoenergia SA (B3: NEOE3) held by pension fund Previ for R$11.95 billion (€1.88 billion / US$2.07 billion). The deal will raise the Spanish company’s ownership in Brazil’s largest power distributor to 84%, reinforcing its strategy to expand in regulated networks as demand and electrification accelerate .

The price of R$32.50 per share gives Iberdrola greater control over a company that supplies electricity to about 40 million people across six states and the Federal District. Neoenergia operates five distribution companies, 18 transmission lines, and more than 3,800 MW of renewable generation. The transaction is subject to regulatory approvals and is expected to close in the coming months .

The R$32.50 per share offer is about 15% above yesterday’s close of R$28.19, highlighting the premium Iberdrola was willing to pay for control.

“Iberdrola’s strategy is clear: strengthen leadership in regulated networks in markets with stable regulation and growing demand,” the company said in the statement.

Pension fund cuts exposure

The sale also marks the exit of Previ, Latin America’s largest pension fund, with assets exceeding R$250 billion (about US$46 billion). A long-time shareholder of Neoenergia, the fund chose to realize gains and rebalance its portfolio. For Iberdrola, the deal secures greater control; for Previ, it frees up resources for new investments and bolsters liquidity at a time when pension funds are under pressure to diversify returns.

Betting on grids and electrification

The acquisition deepens Iberdrola’s exposure to a market where Neoenergia invested R$9.8 billion (€1.54 billion / US$1.70 billion) in 2024 to expand and modernize its grid. The utility won eight Abradee awards last year, including “Best Company” in Brazil, reflecting gains in efficiency and innovation. Looking ahead, the company expects strong growth supported by electrification and incentive-based regulation .

Globally, Iberdrola has invested more than €175 billion (US$192 billion) since 2001 in grids, renewables, and storage across the United States, United Kingdom, Spain, and Brazil. With a market capitalization above €100 billion (US$110 billion), the company is Europe’s largest power utility and one of the world’s top two .