Spanish utility company Iberdrola has decided to buy the rest of Avangrid, an American utility company, for about $2.55 billion. Here are the key details:
- Preliminary Agreement: Iberdrola has reached an early-stage agreement to purchase all the remaining shares of Avangrid that it doesn’t already own.
- Ownership Stake: Iberdrola already owns a majority of Avangrid. They are now aiming to buy the remaining 18.4% of the shares.
- Offer Price: Iberdrola is offering $35.75 for each share of Avangrid, which is about $2 less than the closing price of $37.53 per share on the previous Thursday.
- Deal Confirmation: The news about this deal was first reported by Reuters.
- Previous Proposal: Earlier, in March, Avangrid had confirmed receiving a proposal from Iberdrola to buy the remaining shares at $34.25 each.
Detailed Explanation:
1. Company Involved: Iberdrola is a large utility company based in Spain. Avangrid is a utility company in the United States, partly owned by Iberdrola.
2. Current Situation: Iberdrola already holds a majority share in Avangrid but wants to own it completely by buying the remaining shares.
3. Financial Details:
- Iberdrola plans to spend approximately $2.55 billion on this acquisition.
- They will pay $35.75 per share for the 18.4% of Avangrid shares they don’t own yet.
- This offer price is slightly lower than Avangrid’s recent share price of $37.53.
4. Reporting and Confirmation:
- The news was first reported by Reuters, a well-known news service.
- Avangrid had previously mentioned in March that Iberdrola proposed to buy the remaining shares at $34.25 each.
5. Impact and Next Steps: The completion of this deal will mean that Iberdrola will fully own Avangrid, potentially affecting stock prices and business operations. News about the deal has led to a temporary halt in Avangrid’s stock trading.
About Iberdrola
Iberdrola is a Spanish multinational electric utility company based in Bilbao, Spain. Here are some key points about Iberdrola:
- Renewable Energy Leadership: Iberdrola is a global energy leader and the world’s leading wind power producer. They have been committed to renewable energies for over two decades, making it a fundamental pillar of their clean, reliable, and intelligent business model.
- Global Presence: The company operates in more than 30 countries and serves around 30 million customers. Their subsidiaries include ScottishPower (United Kingdom) and a significant part of Avangrid (United States).
- Sustainable Approach: Iberdrola integrates environmental, social, and governance (ESG) factors into their strategy. They focus on renewable energy, smart grids, storage, and electric mobility, aiming to create sustainable value for all stakeholders.
- Financial Strength: With a workforce of around 40,000 employees, Iberdrola has demonstrated financial strength, expertise, and execution capabilities. They prioritize people and the planet while driving the energy transition.
In summary, Iberdrola is a major player in the global energy sector, emphasizing renewables and responsible business practices.
About Avangrid
Avangrid is a leading sustainable energy company headquartered in Orange, CT. They have a footprint in 24 states with $44 billion in assets. Their primary lines of business are networks and renewables. Through their networks business, they own and operate eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Additionally, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States.
With over 8,000 employees, they’ve built a culture that emphasizes diversity, equity, and inclusion, guided by their ESG+F framework and the UN Sustainable Development Goals. Avangrid has been recognized as one of America’s best corporate citizens by JUST Capital and has received the World’s Most Ethical Companies award for six consecutive years from the Ethisphere Institute. They’re making meaningful strides toward a cleaner energy future!
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