Iberdrola Acquires Remaining Shares in US Subsidiary Avangrid

Iberdrola, which already owns approximately 81.6% of Avangrid, has signed an agreement to acquire the remaining 18.4% minority stake at $35.75 per share. This move follows approval from Avangrid’s Board of Directors and a recommendation by an independent Special Committee overseeing the operation.

The transaction, disclosed in a filing with the National Securities Market Commission (CNMV), represents an improved offer from Iberdrola’s initial proposal of $34.25 per share. The acquisition, totaling $2.551 billion (approximately €2.348 billion at a 1.0866 EUR/USD exchange rate), will lead to a request to delist Avangrid shares from the New York Stock Exchange.

Both Avangrid and Iberdrola’s Boards of Directors unanimously approved the agreement. Iberdrola aims to enhance its exposure to the US networks business, aligning with its strategy to grow in markets with strong credit ratings and regulated businesses.

The deal requires shareholder approval and clearance from various regulators, including the Federal Energy Regulatory Commission and state regulatory commissions in New York and Maine.

Avangrid, headquartered in Connecticut, manages $44 billion in assets and operates in 24 US states. Its primary operations are in networks and renewable energy, serving over 3.3 million customers in New York and New England and maintaining a workforce of 8,000 employees. In 2023, Avangrid reported an adjusted gross operating profit (EBITDA) of $2.43 billion.