Link | Iberdrola has received approval without objection from the Securities and Exchange Commission (SEC) for the purchase of Avangrid. The company expects the transaction to close by the end of 2024. The SEC has raised no objections to the merger prospectus for the acquisition of the 18.4% stake in Avangrid that IBE does not yet own. However, despite the SEC’s approval, the transaction is subject to obtaining all necessary regulatory approvals and the favourable vote of Avangrid’s minority shareholders.
Avangrid has therefore scheduled an Extraordinary General Shareholders’ Meeting for 26 September for the owners of the shares to give their approval, by majority vote, to this transaction. In addition, it must have the approval of the Federal Regulatory Commission (FERC), the Maine Public Utilities Commission (MPUC) and the New York Public Service Commission (NYPSC).
In May IBE announced that it had reached an agreement with Avangrid to acquire 100% of the US company. According to the company’s notification to the Spanish Securities and Exchange Commission (CNMV), it will acquire the 18.4% of the capital it does not yet control for $35.75 per share. This price represents an investment of $2,551 million. The agreement establishes the right of IBE and Avangrid to terminate the contract if the transaction has not taken place on or before 30 June 2025, with the possibility of a three-month extension.
