Iberdrola has signed an agreement to acquire the 18.4% minority stake in its US subsidiary Avangrid, which it did not previously own.
The acquisition will be $35.75 (£28.1) per share, as disclosed in Iberdrola’s filing with the National Securities Market Commission.
This price marks an increase from Iberdrola’s initial $34.25 (£26.9) per share offer.
Iberdrola already held approximately 81.6% of Avangrid, making the additional investment total $2,551 billion (£1.9bn).
Post-transaction, Iberdrola plans to request the delisting of Avangrid shares from the New York Stock Exchange.
The Boards of Directors of both Avangrid and Iberdrola unanimously approved the agreement.
This move aims to enhance Iberdrola’s involvement in the US networks business.
The acquisition is subject to shareholder approval and regulatory clearance from bodies such as the Federal Energy Regulatory Commission and the state regulatory commissions of New York and Maine.
Avangrid, headquartered in Connecticut, holds $44 billion (£34.6bn) in assets and operates in 24 US states.
It focuses on two main areas: networks and renewable energy.
The company operates eight electric and natural gas companies, serving over 3.3 million customers in New York and New England.
Avangrid also manages a portfolio of renewable energy generation facilities across the US and employs around 8,000 people.
In 2023, Avangrid reported an adjusted gross operating profit (EBITDA) of $2.43 billion (£1.8bn).
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