Iberdrola to buy out Avangrid in USD-2.55bn deal

Spanish utility Iberdrola SA (BME:IBE) has agreed to buy out the stake it does not already own in US energy services and delivery company Avangrid Inc (NYSE:AGR) in an all-cash deal worth USD 2.55 billion (EUR 2.34bn).

Iberdrola, which has a stake of about 81.6% in Avangid, said on Friday it will pay USD 35.75 per share to buy the outstanding 18.4% interest in the US company. The initially proposed price per share was USD 34.25 in cash.

The transaction has already been cleared by the board of directors of both entities and will need to be greenlit by shareholders, the Federal Energy Regulatory Commission (FERC) and the state regulatory commissions of New York and Maine. Its closing is due in the fourth quarter of this year, after which Iberdrola will request the delisting of Avangrid’s stock from the New York Stock Exchange.

The acquisition is aligned with Iberdrola’s strategy to grow its exposure to the US networks segment and expand its footprint in markets with strong credit ratings and in regulated businesses.

Connecticut-based Avangrid has two core activities -- networks, owning eight electric and natural gas utilities, and renewables, with a portfolio of more than 8.6 GW of installed capacity. The company has around USD 44 billion in assets and operations in 24 US states.

(USD 1.0 = EUR 0.920)

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