SPAIN Trends and Developments Contributed by: Ignacio Sanjurjo, Ignacio Echenagusia, Natalia Tévar and Javier Valdés, Deloitte Abogados y Asesores Tributarios, S.L.U.
establishing an operational and economic framework capable of resolving congestion issues and, therefore, access constraints to both distribution and transmis - sion networks resulting from limited physical capacity. This situation has led to the blockage of new projects due to the lack of available connection points, thereby preventing the development of generation and/or stor - age projects, as well as residential, industrial or data centre initiatives, ultimately causing a slowdown in investment. From an investment perspective, 2025 witnessed an increase in financing costs, which has triggered vis - ible tensions among certain highly leveraged develop - ers or those with oversized project portfolios, leading in some cases to portfolio reorganisations, selec - tive divestments and restructuring processes within renewable platforms. One illustrative example of this trend can be found in the negotiations reportedly undertaken by Cinven in relation to the restructuring of its energy portfolio in Spain. In conclusion, the Spanish energy sector is expected to undergo a period of consolidation in 2026, primar - ily driven by financial optimisation and balance sheet strengthening within traditional renewable assets, although some limited dynamism may emerge in newer technologies such as biomethane or battery energy storage – both standalone and hybridised with renewable assets. In this context, it will be particu - larly important to strike a balance between three key aspects – regulatory stability, economic viability and legal certainty – as the market will demand projects that are technically feasible, financially robust and legally sound. Government and public services During 2025, transactions in the public sector were primarily focused on adjusting the nature of public entities. On the one hand, this has involved enabling certain entities to operate in the private market with greater flexibility, and, on the other hand, renounc - ing such flexibility in exchange for assuming public powers, thus becoming entities with more public-law character and a reduced private-law component. Looking ahead, the transactions expected in this area are likely to be limited in number and will primarily
respond to existing needs to adapt the nature of pub - lic entities to citizens’ needs, rather than to a policy aimed at reducing the overall number of public bodies. Tourism and hospitality The Spanish tourism and hospitality sector showed strong resilience and growth throughout 2025, with investment activity remaining at elevated levels and operational performance supported by high occupan - cy rates and solid pricing, as highlighted in Colliers’ reports. Looking ahead for 2026, the outlook remains positive, with the sector expected to sustain historic highs in occupancy and average daily rates, driven by robust demand and a persistent shortage of quality assets. These dynamics are fostering further market consoli - dation, as larger players are increasingly positioned to acquire smaller operators amidst strong investor appetite. M&A activity is also being shaped by structural chal - lenges such as labour absenteeism, talent scarcity and retention, sustainability requirements, and the growing role of AI in operational efficiency. In this con - text, large-scale transactions – such as Blackstone’s potential divestment of its European hotel portfolio – could act as catalysts for deal flow, reinforcing an active M&A environment focused on scale, efficiency During 2025, the healthcare and life sciences sector continued to be one of the main drivers of M&A activ - ity in Spain, albeit with a slight slowdown due to the uncertain international macroeconomic environment. The medtech segment was the main beneficiary, with CDMOs, diagnostics and the consolidation of spe - cialised niches also standing out. Notably, there has been strong interest from international financial play - ers in this sector in Spain. One of the most prominent transactions in the sector was the acquisition of Donte Group (Vitaldent, Smysecret, among other brands) by the Canadian pension fund Ontario Teachers’ Pension Plan (OTPP). and long-term value creation. Life sciences and healthcare In 2026, the market is expected to continue growing, driven by the increasing challenges being faced: the
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