In a conference call, Cox Enterprises disclosed that its Mexican subsidiary will seek a capital increase exceeding 300 million euros following the acquisition of Iberdrola Mexico.
The purchase, valued at roughly 3.5 billion euros, transferred control of the country’s largest energy firm to Cox. Executives said the deal strengthens Cox’s financial position and expands its presence in Latin America.
Company officials indicated the capital raise will fund integration costs, support ongoing projects and improve the subsidiary’s balance sheet. They added that the infusion aims to meet regulatory requirements and sustain growth in a market facing rising demand for electricity.
Analysts noted the transaction marks a significant shift in Mexico’s energy sector, where foreign investors have been limited. They expect the capital increase to signal confidence in the subsidiary’s future earnings and may encourage further investment in the region.
Cox’s board will vote on the proposal at its upcoming meeting. If approved, the raise could be completed by early next year, positioning the Mexican unit for expanded operations and potential new acquisitions.