Spanish utility Iberdrola SA (IBDSF) announced Tuesday the sale of 32 operating onshore wind farms in France to a consortium led by General Electric Co. (GE) for up to 400 million euros or $529 million.
The consortium includes GE unit GE Energy Financial Services, EDF Energies Nouvelles (EDFEF) and MEAG - asset manager of Munich Re and ERGO. Following the completion of the deal, GE and MEAG will own 40 percent each of the unit, and France's EDF will own the remaining 20 percent.
The wind farms with installed capacity of 321.4 megawatts are spread across France and went into operation from 2006-2012, with long-term contracts to sell the electricity under the French feed-in tariff.
The divestiture is part of Iberdrola's already announced three-year plan to divest non-core businesses. The company revealed in late October a 2012-2014 plan for divesting assets valued at about 2 billion euros in non-core businesses and markets in order to strengthen its balance sheet.
The plan is focused on overcoming the adverse impact of falling demand, new regulatory measures and higher taxes. The company will look to reduce debt, improve financial ratios and maintain its credit rating.
Iberdrola has already divested non-core assets valued at around 850 million euros, including the current deal to sell 32 wind farms in France.
Earlier, the company sold its seven operating wind farms in Germany to MVV Energie AG, and its 20 percent share in Medgaz to Fluxys. It also sold US-based companies Energy Network to Energetix and NYSEG Solutions to Direct Energy.
Additionally, the company sold all its gas distribution assets in Spain, its 13.25 percent stake in Gas Natural Mexico, most of its shares in telecommunications operator Euskaltel and the sale of GH Electrotermia, a company participated in jointly with BBVA through Corporación IBV.
IBDSF closed Tuesday's regular trading session at $5.64, up $0.20 or 3.68% on a volume of 1,144 shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.