Iberdrola Chairman Ignacio Galán says that a strategic deal signed with Qatar Holding will give the Spanish firm a powerful platform for growth.
The two companies have reached an agreement that will see the Gulf firm buy a 6.16% stake in Iberdrola for just over €2 billion.
The deal will help Iberdrola to strengthen its financial position and pursue planned investments, and will also give Qatar Holding exposure to important markets such as Brazil, Mexico and the USA.
Qatar Holding is the direct investment arm of the Qatar Investment Authority.
Under the deal, Iberdrola has agreed to establish a regional headquarters for the Middle East and Asia as well as a research and development centre in Qatar. The company has been active in Qatar since 2004 when Iberdrola Engineering & Construction managed the construction of the 2000 MW Mesaieed combined cycle power plant.
Earlier in March Iberdrola announced plans to buy back the 20 per cent of shares in subsidiary Iberdrola Renovables that it listed three years ago.
According to Galán, the incorporation of Qatar Holding “provides new business opportunities for both Iberdrola and Qatar Holding”, in particular through “cooperation in areas such as the development of energy policy in Qatar … which has an interest in diversifying into alternative energy sources such as renewables, and promoting research into electric vehicles”.
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