Iberdrola set to bag the remaining Avangrid shares

Offer to acquire 18.4% of capital for $2.48bn aims to strengthen presence in the US networks sector

Iberdrola has initiated a bid to acquire the remaining shares of its US subsidiary, Avangrid. Presently holding about 81.6% of the company's capital, Iberdrola seeks to fortify its presence in the United States' network sector by securing the remaining 18.4%. The offer stands at $34.25 per share, translating to a total investment of $2.48 billion (€2.28 billion). This move aligns with Iberdrola's strategic objective to expand in markets boasting high credit ratings and in regulated sectors like networks. Headquartered in Connecticut, Avangrid currently boasts assets worth $44 billion and operates in 24 states across the US. It primarily focuses on two key business segments: networks and renewables.

Within its network division, Avangrid oversees eight electric and natural gas companies, catering to over 3.3 million customers in New York and New England. Meanwhile, its renewable energy arm manages a diverse portfolio of clean energy generation facilities across the nation. Currently, the company employs approximately 8,000 individuals. In 2023, Avangrid reported an adjusted gross operating profit (EBITDA) of $2.43 billion, marking a notable increase from the previous year's $2.246 billion. This bid underscores Iberdrola's strategic intent to bolster its foothold in the network sector of the United States, leveraging Avangrid's established presence and robust financial performance for continued growth and expansion.