Iberdrola to acquire 80% of Finland’s Caruna

Iberdrola (IBEe) has agreed to acquire an 80% stake in Caruna, Finland’s largest electricity distribution group, for a purchase price of €2.0 billion. The agreement positions Iberdrola (IBEe) as the majority owner of a core part of Finland’s power distribution infrastructure. The remaining 20% of Caruna will continue to be held by Nordic pension funds AMF and Elo, which will stay on as minority shareholders after the transaction closes.

The transaction assigns Caruna an enterprise value of about €5 billion, including its financial debt. This valuation reflects the scale of Caruna’s regulated network business in Finland and its role in supplying electricity to a significant share of the country’s population. Iberdrola’s investment focuses on ownership of electricity distribution assets rather than generation or retail activities.

Caruna operates a distribution network of roughly 89,000 kilometres, with around 67% of its lines located underground. The underground share is a key feature for network resilience in a Nordic climate, supporting continuity of supply in adverse weather. The network spans multiple regions and forms a substantial part of the infrastructure that moves electricity from the transmission grid to end users.

Caruna is reported to serve about 1.5 million people, representing more than 20% of Finland’s population. Through its network, the company delivers electricity to residential, commercial and other customers across its concession areas. Its size and reach make it one of the central actors in Finland’s electricity distribution landscape.

The agreed acquisition will give Iberdrola an 80% ownership interest once completed, while AMF and Elo retain their combined 20% minority position. The structure maintains a local institutional investor presence alongside Iberdrola’s international utility ownership. The deal value incorporates Caruna’s financial debt in the approximately €5 billion enterprise valuation.

Completion of the transaction is expected by the end of 2026 or in the first quarter of 2027. The closing is subject to customary regulatory approvals, including competition and sector-specific reviews where applicable. Until closing, Caruna will continue to operate under its existing ownership structure, with no change in control taking effect before the necessary clearances are obtained.

The agreement reinforces Iberdrola’s positioning in regulated electricity networks in a stable European market. By securing a majority stake in Caruna, Iberdrola expands its presence in Northern Europe and in the electricity distribution segment, which is typically governed by regulatory frameworks and long-term asset lifecycles. The partnership structure with AMF and Elo also maintains continuity with established Finnish institutional investors in Caruna’s shareholder base.