A special feature of the Caruna transaction was revealed: One billion to the account now, the second only in 2.5 years

The electricity network company that caused a stir Caruna’s the sale will take place definitively only after 30 months, when the other half of the two billion transaction amount has been paid.

It turns out that Caruna is buying in Iberdrola From the announcement sent to the Spanish Securities Market Authority. It is dated Tuesday of last week, i.e. the same day when Iberdrola announced that it would buy 80 percent of the Finnish electricity network company Caruna.

In the release, Iberdrola says that the value of Caruna, including debts, is around five billion euros. Iberdrola says that it will pay the other half of the two billion transaction amount as a “deferred” payment over a period of 30 months, and it will be subject to “usual revisions”.

“A larger amount than usual”

Kauppalehti’s analyst Ari Rajala says that splitting the payment into two parts is not exceptional in itself.

“In this case, its size [miljardi euroa] seems larger than usual, i.e. it is almost half of the entire purchase price”, Rajala points out.

The clearest reason for the periodization is probably the optimization of financing.

“The buyer does not want to tie up all the capital at once, in which case the periodization improves cash management, reduces immediate borrowing and possibly lowers financing costs,” says Rajala.

Iberdrola is one of the world’s largest energy companies and very profitable.

Last year, it made an operating profit of ten billion with a turnover of around 44 billion euros. The net profit after depreciation and taxes was over six billion. Iberdrola, based in the Spanish Basque Country, has almost ten times the turnover of Fortum.

There is also debt

However, the Spanish company has taken a risk in its growth path.

According to the 2025 financial statements, the company has a long-term debt of just under 50 billion, while the equity is a good 63 billion. In recent years, it has accumulated interest expenses of two billion euros annually.

Therefore, splitting the business into two seems justified from Iberdrola’s point of view.

Rajala estimates that by dividing the deal into two parts, Iberdrola limits possible political risks.

“In Caruna, uncertainty factors include possible regulatory decisions. When part of the price is paid later, the buyer does not bear all the risk immediately,” says Rajala.

Internet transfer fees are regulated in Finland. In theory, the basis of payment and thus the income from the networks can be subject to political pressure for change.

The transaction review mechanism mentioned in the release may indicate a political risk, but also a substantial change in the economic situation, which could affect the final transaction price.

“The notice mentions that the payment is subject to the usual revisions. This may indicate that the final amount to be paid may depend, for example, on the amount of net debt at the time of the transaction or other agreed financial indicators,” says Rajala.

The sale sparked a debate

Iberdrola’s Caruna deal has sparked a wide-ranging political debate about whether the Finnish government should acquire Caruna’s networks for itself, for example by using pension funds.

Fortum sold its network in 2014 to Caruna, the majority of which is now sold by foreign capital investors to the energy company Iberdrola.

Caruna is currently responsible for the electricity transmission of approximately 1.5 million Finns.

CEO of Elfi, which represents Finland’s major electricity consumers Pasi Kuokkanen pointed out Kauppalehti that Iberdrola’s entry into Finland can be a good thing from the point of view of electricity users. The interest of a large energy sector player in Finland increases supply and is in principle apt to tighten price competition.