Spanish utility Iberdrola has announced that shareholders of Avangrid have approved its proposal to acquire the remaining 18% stake in the company for $2.55bn.

The shareholders will receive $35.75 per share – a 15.2% premium over the 30-day weighted average price before the acquisition’s announcement in March.

The deal will enhance Avangrid’s ability to swiftly secure additional financial resources.

These resources are crucial for the company’s planned investments in transmission and distribution networks across states such as New York, Connecticut, Maine and Massachusetts.

The strategic acquisition will result in Avangrid becoming a private entity and withdrawing from the New York Stock Exchange following regulatory clearances.

With a portfolio that includes an installed capacity of 8.7GW of renewable energy across 24 states and a workforce of 8,000, Avangrid is a significant player in the US energy sector.

The company is developing the 791MW New England Wind 1 project and has recently secured a power purchase agreement from the state of Massachusetts.

Iberdrola chairman Ignacio Galán stated: “The transaction is fully aligned with our strategy of investing in grids in countries with high credit ratings, such as the US.

“Avangrid will have all the resources it needs to continue growing in transmission and distribution, and also in renewable technologies such as offshore wind.”

Iberdrola has also announced that it has secured a favourable environmental impact statement (EIS), for the construction of a new reversible pumped-storage hydroelectric power plant in Alcántara, Spain.

In September 2024, Iberdrola opened the 496MW Saint-Brieuc offshore wind farm, situated 16km offshore Brittany, France.

The $2.6bn project will produce 2,000 gigawatt hours of clean energy annually.

Its key partners are Siemens-Gamesa for the turbines, the Navantia Windar consortium for foundations and transition pieces, Haizea for tower construction, Prysmian for cabling and Van Oord for installation.

Avangrid Shareholders Approve $2.55bn Buyback by Iberdrola