Iberdrola Strengthens Its Position in BrazilIberdrola secures control with the €1.88 billion purchase of 30% of Neoenergia from Previ
Ion Jauregui – Analyst at ActivTrades
Iberdrola has taken a decisive step in its international strategy by reaching an agreement with PREVI, the pension fund for Banco do Brasil employees, to acquire the 30.29% stake in its subsidiary Neoenergia. The deal, valued at 11.95 billion Brazilian reais (approximately €1.88 billion), will allow the Spanish utility to increase its control over the Brazilian company to 84% of the share capital.
The agreed price of 32.5 reais per share underscores Iberdrola’s commitment to a key growth market. Neoenergia supplies electricity to around 40 million people across six regional distributors and Brasilia, operating more than 725,000 kilometers of distribution lines and 3,800 MW of renewable capacity, mainly hydroelectric. In 2024, it was the company with the highest investment in basic infrastructure in Brazil, with expenditures exceeding 9.8 billion reais (€1.54 billion).
The acquisition strengthens Iberdrola’s networks business as a strategic pillar, with the company already managing 1.4 million kilometers of infrastructure in the United States, United Kingdom, Brazil, and Spain. Furthermore, the deal follows the sale of assets in Mexico and a recent capital increase, enabling Iberdrola to reinvest swiftly in strategic markets. Although speculation has arisen in the market regarding a possible delisting of Neoenergia, the company has not made any official statement on the matter.
Technical Analysis of Iberdrola
On the stock market, Iberdrola shares are trading around €15.73, showing a slight correction from yearly highs. The daily chart reflects an underlying upward trend supported by the uptrend line initiated in October 2024. Key support lies at €14.76, while immediate resistance stands at the yearly highs reached on August 22. Since early April, price action has consolidated between €14.72 and the current highs of €16.785, with a narrower trading range between €15.80 and €16.03 acting as the most visited area, centering the Point of Control (POC) around current levels.
The session opened with a bullish gap, lifting the price back to €15.78, slightly above the previous close. This support around the 100-day moving average could indicate an upward reversal despite mixed short-term signals. The RSI at 45.59% suggests slight oversold conditions, while the MACD has entered negative territory with a contracting bearish histogram, signaling possible indecision in the market. For now, both the 50-day and 100-day moving averages maintain their bullish slope, which could support a price recovery later this week.
Meanwhile, the ActivTrades Europe Market Pulse indicator points to a neutral–mixed stance across European markets, with decreasing volumes and a shift toward risk-off sentiment. A breakout above resistance could project the price toward the psychological level of €17.50, whereas a break below €16 would open the door to declines toward stronger support areas.
Iberdrola Strengthened Amid Portfolio Rotation
The Brazilian deal reinforces the company’s fundamental appeal and, combined with expectations for its new strategic plan at the end of the month, could sustain the stock’s positive bias in the short and medium term. The broader global market context is leaning toward neutrality with a risk-off tilt, a backdrop that typically benefits defensive companies like Iberdrola due to the stability of their regulated income and exposure to critical infrastructure. In this light, the Brazilian operation enhances Iberdrola’s profile as a defensive asset, while the upcoming strategic plan could act as an additional catalyst to consolidate its position as a safe haven within the European utilities sector.
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