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New York regulator has given consent for the 100% buyout of US renewables and grid subsidiary
Iberdrola has completed the last step in the acquisition of 100% of its US subsidiary Avangrid, having obtained the approval of the New York regulator on 20 December.
The New York regulator’s approval comes after the deal obtaining approvals from the Federal Energy Regulatory Commission (FERC) and the Maine regulator.
With the closure, Avangrid (picture of Avangrid headquarters) will operate as a private company and maintain its headquarters in Connecticut.
This merger will allow a more efficient approach for Iberdrola to invest in US energy infrastructure as Avangrid will be able to participate “more economically” in new energy infrastructure projects in its grid and renewables businesses, representing a “significant investment in local communities and the generation of hundreds of direct and indirect jobs”.
These projects will create a more robust, resilient and reliable electric grid, and help meet the growing demand from utilities and data centres, stated Iberdrola.
About a decade ago, Iberdrola merged its North American subsidiary with the listed UIL Holdings to establish Avangrid, which has been listed on the US stock exchange ever since.
Avangrid today distributes electricity to a population of seven million people in the states of New York, Connecticut, Maine and Massachusetts and has an installed renewables capacity of 8700MW across 24 states.
It also has 8000 employees.
Once the transaction closes on 23 December, and under the terms of the merger agreement, Avangrid shareholders will receive $35.75 per share, and Avangrids shares will cease trading on the New York Stock Exchange. |
