July 20, 2024 | 12:03

Capital of the world

Iberdrola takes full control of the American company Avangrid

Iberdrola in Euskadi translates into 30.000 jobs and contributes 3.500 billion to the Basque GDP each year

Mairenis Gomez

May 19, 2024 | 3:00 p.m.

Iberdrola has reached an agreement in principle to take 100% of its US subsidiary Avangrid, of which it already controlled approximately 81,6% of the capital, for 2.348 million euros. This information has been communicated to the National Securities Market Commission (CNMV).

A strategic investment: Iberdrola acquires all of Avangrid for 2.348 million euros

Iberdrola has offered 35,75 dollars (32,91 euros) for each share that it did not yet own, which represents a total disbursement of 2.551 million dollars (about 2.348 million euros). However, the company has clarified that a binding agreement for both parties in relation to this operation has not yet been reached.

In March, Iberdrola launched an offer to acquire the remaining 18,4% of the shares of its US subsidiary. The objective of this transaction is to increase its exposure to the network business in the United States at a key time for the company. Iberdrola seeks to grow in markets with high credit ratings and in regulated businesses such as networks.

Avangrid: a valuable asset in Iberdrola's expansion in the United States

Headquartered in Connecticut, Avangrid currently has $44.000 billion (€40.391 million) in assets and operations in 24 states in the United States. Through its networking business, it owns and operates eight electric and natural gas companies, serving more than 3,3 million customers in New York and New England.

Regarding the renewable energy business, Avangrid owns and operates a portfolio of renewable energy generation facilities throughout the United States. In 2023, the company obtained an adjusted gross operating profit (Ebitda) of 2.430 million dollars (2.230 million euros), compared to 2.246 million dollars (2.061 million euros) the previous year.

Boosting growth and sustainability: Iberdrola's vision

This acquisition reflects Iberdrola's strategy to consolidate its position in the US market and increase its presence in the networks and renewable energy sector. The company sees this as a crucial time to expand into highly credit-rated markets, which will provide long-term stability and growth opportunities.

The president of Iberdrola, Ignacio Galán, has emphasized on several occasions the importance of investing in clean energy and smart networks. The total purchase of Avangrid will allow Iberdrola to strengthen its commitment to sustainability and the energy transition, two fundamental pillars in its corporate strategy.

Outlook and future: what this acquisition means for Iberdrola and Avangrid

With full control of Avangrid, Iberdrola will be able to optimize the integration of its operations and explore new investment opportunities in the United States. This move will not only strengthen Iberdrola's position in the North American market, but will also allow it to benefit from favorable policies towards renewable energy and the modernization of energy infrastructure in the country.

More news