Iberdrola to acquire 80% of Finland's Caruna for €2 billion, full deal valued at €5 billion

Iberdrola announced an agreement to purchase an 80% stake in Caruna Group, Finland’s largest electricity distribution operator, for €2 billion. Including debt, the transaction values Caruna at roughly €5 billion. Caruna serves about 1.5 million customers – more than 20% of Finland’s population – and operates a network of around 89,000 km, 67% of which is underground. The acquisition is subject to regulatory approval and is expected to close in the first quarter of 2027.

The deal fits Iberdrola’s strategy of concentrating investment in electricity‑distribution networks in stable markets with attractive regulatory frameworks. Finland’s AA+ credit rating and a regulatory regime guaranteeing an estimated 8% return on equity until 2031 were highlighted as key factors. Iberdrola expects the acquisition to boost Caruna’s results by about 7% annually, backed by planned investments of €200‑300 million per year to digitalise and reinforce the grid, supporting growing renewable generation, industrial demand and data‑center expansion. Nordic pension funds AMF and Elo will retain a 20% minority share.

Iberdrola plans to allocate a substantial portion of its 2025‑2028 capital spending to distribution networks, complementing its existing operations in the United States and the United Kingdom.