Mexico Infrastructure Partners’ (MIP) acquisition of 13 power plants in Mexico was awarded Energy Transition Acquisition of the Year in Latin America, with judges saying the complex deal was instrumental to the implementation of the Mexico’s energy policy.

The $6.2 billion deal was the largest ever done in Mexico’s energy sector and included 12 combined-cycle and co-generation power plants and a 103MW wind farm, for a total capacity of 8,539MW.

MIP financed the transaction with funds from public institutions. About 40% of the total will be funded through equity from Fonadin, Mexico’s national infrastructure fund, which will receive MX$45 billion ($2.5bn) from the Ministry of Finance. Further debt was provided by development and commercial banks.

Judges viewed the transaction to be top of the list in terms of market impact to M&A and innovative structuring.

Indeed, the members of the independent judging panel were also impressed with the participants for dealing with the Mexican regulations to get the deal done.

The submission said: “This transaction was instrumental to implement the Mexican government energy policy and was made in the midst of a number of changes in the energy regulation sector that were being contested by various players in the Mexican market. The consummation of this transaction allowed for the energy sector to be reactivated in Mexico.”

The assets are located across the states of Tamaulipas, Nuevo León, Durango, San Luis Potosí, Baja California, Sinaloa and Oaxaca.

Assets included in the transaction are:

• Monterrey I and II
• Monterrey III and IV
• Altamira III and IV 
• Altamira V 
• Escobedo
• La Laguna 
• Tamazunchale I 
• Tamazunchale II 
• Baja California 
• Topolobampo II 
• Topolobampo III 
• Enertek 
• La Venta III (wind) 

This did not spell an exit for Iberdrola from Mexico, instead the deal, which came after years of rift with the Mexican government, allows the Spanish company to focus on its portfolio of renewable energy projects in the country, increasing its wind and solar assets and contributing to the country's energy transition process.

The company said it plans to deliver 2,000MW of renewable projects in Mexico in the next 5 years.

Iberdrola said the deal is in keeping with its strategy to continue to deliver on its decarbonisation commitments.

Advisers to MIP include:

• Barclays – financial
• Creel García-Cuellar, Aiza y Enriquez – legal

Advisers to Iberdrola include:

• JP Morgan – financial
• BBVA – financial
• Citigroup – financial
• Santander Corporate and Investment Banking – financial
• Baker McKenzie – legal 

Advisers to the commercial lenders include:

• Milbank – international legal
• Galicia Abogados – local legal

Advisers to the Mexican development banks include:

• Deloitte – financial and tax
• Milbank – international legal to Nafin and Bancomext
• White & Case – international legal to Banobras
• Galicia Abogados – local legal to Bancomext and Nafin
• White & Case Mexico – local legal to Banobras