Commodities
AMLO Widens State’s Reach With $6 Billion Iberdrola Deal
- Purchase of Spain’s plants represents ‘new nationalization’
- Shares rise as investors welcome reduced exposure to Mexico
The logo of Iberdrola Renovables SA sits on a wind turbine at the Maranchon wind farm in Maranchon, Spain, on Monday, Oct. 18, 2010.
Photographer: Denis Doyle/Bloomberg
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Mexico agreed to buy a fleet of natural gas plants and a wind farm for $6 billion from Spain’s biggest power company as part of President Andres Manuel Lopez Obrador’s push to nationalize energy production.
The deal, announced Tuesday, will make Mexico’s state utility the nation’s biggest power generator and represents a “new nationalization,” the president said in a video posted on Twitter.