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December 27, 2024

Spanish company acquires Orange-based Avangrid for $2.5B; HQ to remain in CT

PHOTO | CONTRIBUTED Avangrid
By Andrew Larson

Spanish energy giant Iberdrola has completed its $2.55 billion acquisition of Orange-based utility company Avangrid, the Spanish company announced this week.

Iberdrola has owned the majority of Avangrid, which had been publicly traded, for about a decade.

The sale gives Iberdrola control over the remaining 18.4% of the company that it did not own.

The acquisition was announced in March.

With the completion of the sale, Avangrid will operate as a private company. Its headquarters will remain in Orange, Iberdrola said in Monday’s announcement.

Avangrid has begun the process of being delisted from the New York Stock Exchange.

State officials, including Attorney General William Tong and Consumer Counsel Claire E. Coleman, have questioned the sale, noting that Avangrid will no longer have to file reports with the U.S. Securities Exchange Commission and will lose its minority shareholders, who “could serve as a check on risky corporate behavior.”

Iberdrola said the merger will allow it to grow and invest in the United States more efficiently. Its U.S. subsidiary will “participate more economically in new energy infrastructure projects in its grid and renewable businesses,” which the company said represents “a significant investment in local communities” that will create new jobs. 

“These projects will create a more robust, resilient and reliable power grid, and will help meet the growing demand from utilities and data centres,” Iberdrola said.

Avangrid has assets of $46 billion dollars and distributes electricity to 7 million people in New York, Connecticut, Maine and Massachusetts. It has about 8,000 employees, including 1,800 in Connecticut.

Avangrid shareholders will receive a payout of $35.75 per share. They will also receive a proportional quarterly dividend, which will be paid on Jan. 2, 2025.

In Connecticut, Avangrid owns United Illuminating, Southern Connecticut Gas, Connecticut Natural Gas, Avangrid Service Co. and Avangrid Management Co.

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