Free cookie consent management tool by TermsFeed Blog - Iberdrola to acquire remaining 18.4% of Avangrid in $2.6B deal | Samuel Knight
May 28, 2024 Energy

Iberdrola to acquire remaining 18.4% of Avangrid in $2.6B deal

The Spanish company already owns 81.6% of its U.S. subsidiary, which has nearly 9 GW of onshore renewables and several offshore wind farms under development.

Iberdrola is set to acquire full ownership of Avangrid, its publicly-traded American subsidiary, in a $2.6 billion deal approved by both companies’ boards this month, according to a news release on Friday. Iberdrola, which currently owns 81.6% of Avangrid, will buy the remaining 18.4% for $35.75 per share.

The transaction is expected to be finalized in the fourth quarter of 2024, increasing the Spanish energy conglomerate’s involvement in the U.S. networks business. Iberdrola plans to invest €21.5 billion ($23.4 billion) in grid projects in the U.S., United Kingdom, Brazil, and Spain by 2026, including €6.5 billion ($7.1 billion) specifically for transmission grids in these regions, according to its networks webpage and latest strategic plan.

Avangrid President and CEO Pedro Azagra stated on May 17 that the company will maintain its operations post-acquisition, continuing to serve customers and expand its renewable energy assets to lead the clean energy transition.

Avangrid is currently developing several offshore wind projects, including Kitty Hawk Wind off North Carolina and New England Wind 1 and 2 off Massachusetts. Despite challenges such as local opposition, supply chain issues, and inflation affecting U.S. offshore wind development, the state and federal permitting processes and workforce performance provide reasons for optimism, according to Avangrid COO of offshore wind Sy Oytan, who spoke at a Cleanpower 2024 panel discussion earlier this month.

However, Iberdrola’s strategic plan indicates that two-thirds of its near-term investments will be directed towards networks, which is another key business area. Avangrid’s U.S. networks business operates eight electric and natural gas utilities that serve 3.3 million customers in New York and New England.

Share via Email