Offer to acquire 18.4% of capital for $2.48bn aims to strengthen presence in the US networks sector
Iberdrola has initiated an offer to purchase the remaining shares of its US subsidiary, Avangrid. Presently holding around 81.6% of the capital, Iberdrola seeks to bolster its presence in the network sector in the United States by acquiring the remaining 18.4%. The proposed price per share is $34.25, amounting to a total investment of $2.48 billion (€2.28 billion). The primary aim of this transaction is to expand Iberdrola's involvement in the network segment within the United States, particularly as the company looks to expand into markets with strong credit ratings and regulatory businesses like networks. Avangrid, headquartered in Connecticut, boasts assets totaling $44 billion and operates across 24 US states. The company's operations are divided into two principal areas: networks and renewables.
In the realm of renewable energy, Avangrid possesses and operates a diverse portfolio of renewable energy generation facilities across the nation. Currently, the company employs 8,000 individuals. In 2023, Avangrid reported an adjusted gross operating profit (EBITDA) of $2.43 billion, marking an increase from $2.246 billion the previous year. Iberdrola's endeavor to acquire the remaining stake in Avangrid reflects its strategic vision of expanding its footprint in the US network market. This acquisition underscores Iberdrola's commitment to sustainable growth and reinforces its standing as a prominent player in the global energy sector.
