Spanish energy giant Iberdrola has secured an agreement to acquire Caruna, Finland’s largest electricity distribution operator, in a deal valuing the business at approximately €5 billion including financial debt.
Under the terms of the transaction, Iberdrola will pay €2 billion for an 80% equity stake in the Finnish grid operator. Nordic pension funds AMF and Elo will retain their existing combined 20% holding in the business.
Caruna serves approximately 1.5 million people, representing over a fifth of the Finnish population. Its network spans roughly 89,000 kilometres, with 67% laid underground. Operating via two main distribution concessions, the company covers the area surrounding central Helsinki, the Joensuu region — an area characterised by strong industrial activity and rising demand from new data centres — and key territories across western and north-eastern Finland.
The deal aligns with Iberdrola’s broader strategy to concentrate capital on network infrastructure in stable jurisdictions with robust regulatory frameworks, following its recent divestment of thermal power plants in Mexico. Finland boasts an AA+ credit rating alongside a clear regulatory regime guaranteed until 2031, which offers a return on equity of around 8%.
Caruna is projected to grow its asset base and earnings by roughly 7% annually in the coming years. Capital expenditure is expected to run between €200 million and €300 million each year to strengthen and digitalise the grid to support rapid expansion in renewable energy capacity. These investments may increase further to meet rising demand driven by economic electrification, expanding data centres, and distribution companies taking on electricity transmission development under Finnish regulatory changes introduced in 2026.
Subject to customary regulatory approvals, the transaction is expected to complete in the first quarter of 2027.
Commenting on the acquisition, Ignacio Galán, Executive Chairman of Iberdrola, stated that the transaction reinforces the company’s strategic commitment to electricity networks as essential infrastructure for promoting energy security, self-sufficiency, and competitiveness. He highlighted Finland’s high credit quality and predictable regulatory framework, noting that Caruna possesses strong growth prospects driven by network demands linked to new renewable generation, industrial and residential growth, and the wider electrification of the economy.
