Iberdrola disputa a NextEra el liderazgo mundial

Iberdrola, the largest Spanish energy company, is on the verge of achieving the historic milestone of becoming the world's largest private electricity company by stock market capitalization, surpassing the American NextEra. Iberdrola's stock, traded in Spain and a major Ibex value, closed at 20.33 euros per share on Friday, a slight 0.4% increase, totaling 135.665 billion euros, near historic highs.

Meanwhile, NextEra, listed on the New York Stock Exchange, closed at 76.08 dollars, a 0.61% rise, with a capitalization of 158.701 billion dollars (139.304 billion euros). As the American group, NextEra has been the world's top private electricity company by market value for years, immune to a multibillion-dollar lawsuit filed by Spain against the government for cutting renewable subsidies over a decade ago.

While Iberdrola has gradually approached this goal, NextEra's power combined with its U.S. market strength made it seem almost impossible to overtake in the private electricity market stock rally (state-owned Chinese entities or heavily intervened by the Asian government play in a separate league). The situation has changed now with Iberdrola closing in and NextEra in decline, showing Spain's electricity sector on the rise.

Dominion, a problem Today, nearly ten investment firms set potential values above 10% for Iberdrola, such as HSBC or JB Capital, setting an objective price at 23.5 euros. Experts cite various reasons for this shift, including differences in each group's business strategy execution. Iberdrola meticulously executed a rotation plan for assets, mobilizing over 20 billion euros in resources.

Conversely, NextEra's ambitions led to its downfall. In May, NextEra attempted rapid growth by acquiring Dominion Energy, a $66 billion merger transaction. However, integration issues have plagued the deal, penalizing the market. Moreover, political opposition to the impact on electricity bills or competition has further harmed NextEra.

NextEra's stock has fallen 6.3% this year, primarily since summer, due to the Dominion acquisition concerns. Additionally, the energy sector downturn affects utilities, as lower Treasury bond yields put downward pressure on regulated utilities with high capital intensity and sensitivity to interest rates. NextEra's stock decline also reflects negative sentiment towards data center expansion in the U.S., a new unexpected adversary for the company.

Growing opposition to data centers has turned them from a symbol of progress into a political and neighborhood conflict exacerbated by the rising fear of artificial intelligence (AI). While society opposes new industrial investments near homes, the same occurred with fracking in recent years, leading to widespread protests and dystopian films.

Meanwhile, Iberdrola, celebrating its 125th anniversary this year, is experiencing a golden era. The company's stock has risen over 10% this year and 30% in the past twelve months, defying expectations and surpassing its targets. The group's strategic shift from renewables to electric networks has reset the company's financial narrative, with 58 billion euros in planned investments in electricity networks, the main destination in its 2025-2028 strategy.