Iberdrola to acquire remaining 18% stake in Avangrid for $2.55bn

Spanish utility Iberdrola has announced that Avangrid shareholders have approved its $2.55 billion proposal to acquire the remaining 18% stake in the company. Shareholders will receive $35.75 per share, representing a 15.2% premium over the 30-day weighted average price before the acquisition’s March announcement.

The acquisition will enhance Avangrid’s ability to secure financial resources needed for investments in transmission and distribution networks in states like New York, Connecticut, Maine, and Massachusetts. Following regulatory clearances, Avangrid will become a private entity and delist from the New York Stock Exchange.

With 8.7 GW of renewable energy capacity across 24 states, Avangrid plays a significant role in the US energy sector. The company is currently developing the 791 MW New England Wind 1 project and has secured a power purchase agreement from Massachusetts.

Iberdrola also secured a favourable environmental impact statement (EIS) for a new pumped-storage hydroelectric power plant in Alcántara, Spain. Additionally, Iberdrola opened the 496 MW Saint-Brieuc offshore wind farm in France, a $2.6 billion project expected to produce 2,000 GWh of clean energy annually.