Iberdrola agrees to buy majority stake in Finland's Caruna

On 21 July 2026, Spanish energy company Iberdrola said it had agreed to acquire Finland's largest electricity distribution company, Caruna, in a deal valuing the company at around 5.0 billion euros, or $5.8 billion, including debt.

Iberdrola said the transaction would mark its entry into Finland's electricity distribution market. The deal covers the purchase of 80 percent of Caruna's equity from Canadian pension fund Ontario Teachers' Pension Plan and US investment firm KKR for about 2.0 billion euros. Nordic pension funds AMF and Elo will keep their existing 20 percent stake.

The company said the deal includes an upfront payment of about 1.014 billion euros when it is completed, followed by a deferred payment of about 1.0 billion euros within 30 months after closing.

Caruna is Finland's largest electricity distribution operator. It serves about 1.5 million people, or more than 20 percent of Finland's population, and operates a network of about 89,000 kilometres, or 55,000 miles. About 67 percent of its infrastructure is underground.

The acquisition is expected to close in the first quarter of 2027, subject to regulatory approvals. Iberdrola has made electricity networks a key part of its investment strategy as countries seek to upgrade power grids to support renewable energy expansion and rising electricity demand.