SMM

Spanish utility Iberdrola has agreed to buy out some of the shares it does not already own in US energy services and delivery company Avangrid for a cash value of US$25.5 (€2.34 billion) and signed related agreements. Iberdrola, which currently owns about 81.6% of Avangrid, said on Friday it would pay $35.75 per share for the publicly traded 18.4%. The transaction has been approved by the boards of directors of both parties, but is subject to shareholder approval, the Federal Energy Regulatory Commission (FERC) and the New York and Maine regulatory commissions. The deal is set to close in the fourth quarter of this year, after which Iberdrola will require Avangrid shares to be delisted from the New York Stock Exchange (the company is listed on the Madrid Stock Exchange). Connecticut-based Avangrid has two core businesses: networks (which owns eight electric and natural gas utilities) and renewable energy (which has more than 8.6 gigawatts of installed capacity and multiple storage operations). This acquisition indicates that Iberdrola will continue to expand its business in the sustainable energy field in the United States.