Shareholders of Avangrid have given the green light for Iberdrola to acquire 18.4% of the company’s share capital through a merger. This proposal saw an overwhelming level of support from shareholders, with more than 99% voting in favor of the transaction and roughly 93% of shareholders, excluding votes from Iberdrola and QIA, backing the plan.
Once finalized, this acquisition will lead to Avangrid being delisted from the US stock exchange. Iberdrola, under the leadership of Ignacio Galán, is set to invest approximately $2.55 billion (about €2.3 billion) in this endeavor. The deal has already secured approval from federal regulators, with a pending publication from the Maine regulators, and is expected to close by the end of the year pending approval from New York authorities.
This strategic move will bolster Iberdrola’s growth trajectory in the United States, a market it has operated in for over two decades. Avangrid emerged from the merger between Iberdrola’s North American subsidiary and UIL Holdings nearly ten years ago and has since been a publicly traded entity.
With a robust asset base of $46 billion, Avangrid serves around 7 million customers across New York, Connecticut, Maine, and Massachusetts. Its renewable energy capacity is impressive, totaling 8,700 MW across 24 states, supported by a workforce of approximately 8,000 employees.
Looking ahead, Avangrid anticipates significant growth opportunities by the end of the decade, projecting approximately $30 billion in investments for transmission and distribution networks, offshore wind, solar, and onshore wind projects. The merger will streamline Avangrid’s access to financial resources necessary for these advancements.
Iberdrola’s Chairman emphasized that this transaction aligns perfectly with their strategy to invest in high-quality grid infrastructure in countries with strong credit ratings, such as the United States. The additional resources will fuel continued growth in both transmission and distribution sectors, as well as in renewable technologies, particularly offshore wind.
As part of the transaction, shareholders of Iberdrola’s US subsidiary will receive €35.75 per share, reflecting a 15.2% premium based on the average share price over the 30 days prior to the announcement.
