Spanish energy company buys Caruna – Seller: “Attractive offer”

Spanish energy company Iberdrola buys a majority stake in Finland’s largest electricity grid company From Carunathe Spanish company says on its website.

According to the release, Caruna’s value is five billion euros including debts. Iberdrola buys an 80 percent stake in Caruna for two billion euros. According to Iberdrola, Nordic pension funds AMF and How much will retain their current 20 percent ownership.

Kauppalehti contacted Caruna’s communications director Leena Lehti-Stenholmin according to Caruna does not comment on the transaction, as it is a matter for the owners.

Later, Caruna announced on its own website that a US capital investor was involved in the business arrangement KKR gives up its entire 40 percent ownership stake. Also Ontario Teachers’ Pension Plan (OTPP) sells its 40 percent ownership of the company. The holdings of Elo (7.5 percent) and the Swedish AMF (12.5 percent) remain unchanged.

The acquisition is expected to be completed in the first quarter of 2027. It requires the approval of the authorities.

Caruna’s electricity network serves 1.5 million people in Finland. Caruna’s networks are in South, South-West and West Finland, Joensuu and Northeast Finland.

The Canadian Pension Fund is grateful

The Canadian pension fund OTPP and the US-based KKR are owned by Caruna for five years.

Director responsible for the pension fund’s infrastructure investments James Adam tells Kauppalehti by email that the company’s majority owners received an offer from Iberdrola. The fund found the offer attractive enough to proceed with the deal, which was in line with its duty of care to its members.

“Caruna is an excellent company that we have been proud to own, and we wish it all the best for future success,” says Adam.

According to the pension fund’s press release, during the ownership period, the focus has been on supporting Caruna’s growth, strengthening the network, improving disruption tolerance and promoting security of supply and Finland’s energy transition.

In the press release, Adam thanks the company’s management Matti Ruotsalaa and Jyrki Tammivuorti. Ruotsala is the chairman of Caruna’s board and Tammivuori is CEO.

Finland’s stability is an advantage

According to Iberdrola, the acquisition supports its strategy of focusing on stable markets. Finland’s advantage is high creditworthiness and a predictable and attractive regulatory environment.

“Caruna has strong growth prospects thanks to the need for networks related to new renewable energy production, the growing demand in the industrial and residential sectors and the electrification of the economy,” says Iberdrola’s CEO in the press release Ignacio Galan.

In addition to Spain, Iberdrola operates in Great Britain, the United States, Mexico and Brazil. The company’s turnover in the first quarter of this year was 12 billion euros. Operating profit was 2.6 billion euros. The company had more than 45,000 employees at the end of the first quarter.

Disputes are handled in arbitration

The owners of Caruna challenged In January of last year, the State of Finland went to arbitration in Washington.

In the arbitration court, the capital investors are demanding approximately two billion euros in compensation from the Finnish government based on the ECT agreement signed by Finland, which regulates international investments in the energy sector.

In Caruna’s case, the dispute concerns whether the Energy Agency’s new regulation limits electricity transmission revenues in violation of the ECT agreement.

Addendum 21.7. 10:35 p.m.: Added comments from James Adam of the Ontario Teachers’ Pension Plan.