Avangrid to Delist from New York Stock Exchange as Iberdrola Completes Full Takeover

Iberdrola expects to close the Avangrid transaction today, 23 December, after the Spanish renewable energy company obtained the approval of the New York Public Service Commission to acquire the shares it did not already own in its US subsidiary. Once the transaction closes, Avangrid will become a private company and its shares will cease trading on the New York Stock Exchange (NYSE).

Iberdrola held an 81.6 per cent stake in Avangrid and launched an offer at the beginning of this year to buy the remaining 18.4 per cent in the Connecticut-headquartered company. Avangrid’s shareholders approved the acquisition in September when Iberdrola said the transaction was valued at USD 2.55 billion (about EUR 2.4 billion).

The takeover approval from the New York regulator follows the approvals Iberdrola already obtained from the Federal Energy Regulatory Commission (FERC) and the Maine Public Utilities Commission.

In the investor information published on 20 December, Iberdrola said that in connection with the closing of the merger, Iberdrola and Avangrid will terminate the shareholder agreement the two companies entered on 16 December 2015 and Avangrid would direct the New York Stock Exchange to initiate the process of delisting all of its shares of common stock.

Under the terms of the merger agreement, before Avangrid delists from NYSE, its shareholders will receive USD 35.75 (around EUR 34.33) per share and those who were shareholders on 2 December 2024 will receive the proportional quarterly dividend until closing, which will be paid on 2 January 2025.

“This merger will allow Iberdrola to invest in the United States more efficiently. The subsidiary will be able to participate more economically in new energy infrastructure projects in its grid and renewables businesses, representing a significant investment in local communities and the generation of hundreds of direct and indirect jobs. These projects will create a more robust, resilient and reliable electric grid, and help meet the growing demand from utilities and data centers”, Iberdrola said in a press release on 20 December.

According to its now-full owner, Avangrid today has assets of USD 46 billion (around EUR 44 billion). The company distributes electricity to 7 million people in the states of New York, Connecticut, Maine and Massachusetts and has an installed capacity of 8.7 GW of renewable energy in 24 states.