Iberdrola reaches an agreement with Avangrid to acquire 100% of the US company

Iberdrola has signed the agreement to acquire the minority stake in its US subsidiary Avangrid that it does not already own. Avangrid's Board of Directors has approved the transaction, following the recommendation of the committee made up entirely of independent directors that has been set up specifically for this transaction (Special Committee). 

Iberdrola will acquire the 18.4% of the capital it does not yet control for 35.75 dollars per share, according to the company's notification to the Spanish National Securities Market Commission (CNMV). This price is an improvement on Iberdrola's original proposal (34.25 dollars per share). At present, Iberdrola already owns approximately 81.6% of the US company. 

This price represents an investment of 2,551 million dollars for Iberdrola - around 2,348 million euros at the current exchange rate, applying a euro/dollar exchange rate of 1.0866. Following completion of the transaction, Avangrid's shares will be delisted from the New York Stock Exchange. The agreement was unanimously approved by the members of the Boards of Directors of both Avangrid and Iberdrola.  

The objective of this transaction is to increase exposure to the network business in the United States at a key moment for Iberdrola, which wants to grow in markets with high credit ratings and in regulated businesses such as networks. The transaction is conditional on the approval of shareholders and regulators, such as the Federal Energy Regulatory Commission and the New York and Maine regulatory commissions.   

Headquartered in Connecticut, Avangrid currently has 44 billion dollars of assets and operations in 24 US states. Through its network business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewable energy business, Avangrid owns and operates a portfolio of renewable energy generation facilities throughout the United States. The company currently employs 8,000 people. 

In 2023, the company reported adjusted gross operating profit (ebitda) of 2.43 billion dollars, up from 2.246 billion dollars in the previous year.