Cox Energy Eyes Stronger Mexico Business After Abengoa Acquisition

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The 150mn-euro acquisition of infrastructure, water and energy multinational firm Abengoa by the Spanish consortium Grupo Cox could help its Mexico-based PV solar player Cox Energy America reach business plan goals for the country in the upcoming years. 

Cox Energy, the first company to ever list in both Mexico’s tech-focused stock exchange BIVA and Spain’s BME Growth, announced Monday that the group formalized the acquisition of the autonomous productive units of Grupo Abengoa, which used to have a strong presence in bidding contests for Mexico. 

“The closure of the transaction … will allow Grupo Cox to strengthen its leadership in the industry and expand its presence in new sectors and regions,” Enrique Riquelme, Founder and President of Cox Energy Group, said in a statement. 

The purchase was backed by unions, the public sector and several banks, among others, the statement said. 

Last year, Cox Energy America CEO José Antonio Hurtado said in a quarterly results call with investors that the company had “more than 500MW of opportunities in Mexico, so we decide this year how the situation – taking into account distribution – evolves when we start launching these projects, developing them, initiating the construction.”

While President Andrés Manuel López Obrador’s energy policies scared away new renewable investments in the country during the first couple of years of his six-year term, the administration’s sudden change of heart and openness to cooperation has resuscitated hope for certain international players. 

Abengoa has been present in Mexico since the 80s, but it last made news in 2021 when it was awarded a contract to develop four distribution projects in Yucatán, Quintana Roo, Sonora and Baja California states. 

According to its website, the firm has in Mexico more than 6,500km of transmission lines built.

Cox, on the other hand, has more than 36 solar parks in the region with total capacity of more than 1.8GW in Mexico, Chile, Colombia, Central America and the Caribbean.

The 150mn-euro (US$165mn) acquisition of infrastructure, water and energy multinational Abengoa by Spanish consortium Grupo Cox could help Mexico-based PV solar player Cox Energy América

Cox Energy, the first company to list on both Mexico’s technology-focused stock exchange BIVA and Spain’s BME Growth, announced Monday that the group formalized the acquisition of Abengoa’s autonomous productive units, which used to participate heavily in Mexican tenders while the company remains active in other Latin American countries. 

“The closure of the transaction … will allow Grupo Cox to strengthen its leadership in the industry and expand its presence in new sectors and regions,” Cox Energy president Enrique Riquelme said in a statement. 

The deal was backed by unions, the public sector and several banks, among others, the statement said. 

Last year, Cox Energy América CEO José Antonio Hurtado said in a results call that the company had “more than 500MW of opportunities in Mexico, so we decide this year how the situation – taking into account distribution – evolves when we start launching these projects, developing them, initiating the construction.”

While President Andrés Manuel López Obrador’s energy policies scared away new renewable investments in the country during the first couple of years of his term starting in 2018, the administration’s subsequent policy changes and openness to cooperation revived hope for certain international players. 

Abengoa has been present in Mexico since the 1980s, but it last made news in 2021 when it was awarded a contract by public utility CFE to develop four distribution projects in Yucatán, Quintana Roo, Sonora and Baja California states. 

Source : Bnamericas