Iberdrola agrees to buy Contigo Energía electricity retail business, adding 100,000 customers

Iberdrola has agreed to acquire the electricity retail business of Contigo Energía in Spain. The purchase will add 100,000 electricity customers to Iberdrola in Spain.

The agreement was reached with the Gesternova group. The company targeted by the transaction is Gesternova Servicios Energéticos, which trades under the Contigo Energía brand. The regulatory filing names Iberdrola and Nurevia Energía as the acquirers.

The acquisition is limited to the electricity retail business and excludes electricity production, transmission and distribution activities. This is Iberdrola's first acquisition of an electricity retailer in Spain.

Iberdrola says the purchase forms part of its strategy to grow its retail business and promote electrification from the demand side. Once the transaction is completed, Contigo Energía will continue operating independently within the Iberdrola Group.

The transaction is in the notification phase before Spain's National Markets and Competition Commission (CNMC). The competition authority classified the transaction as a business concentration through the acquisition of sole control. The CNMC has not yet published a decision on the transaction.

The transaction remains subject to customary closing conditions. The public filing does not currently disclose the price agreed by the parties. It also does not currently specify the precise assets included in the acquisition.