Spanish energy giant Iberdrola has offered to acquire the remaining 18.4% stake in its US subsidiary Avangrid for $2.48bn.

Iberdrola is offering $34.25 per share, a 10% premium over Avangrid’s average share price in the month to 8 March 2023.

The company currently holds 81.6% of Avangrid and aims to strengthen its network business in the US.

This brings the total enterprise value of Avangrid to $13.2bn, according to Renewables Now.

Avangrid has acknowledged the receipt of Iberdrola’s non-binding proposal to purchase all shares it does not already own.

An unaffiliated committee of Avangrid’s board will evaluate the proposal with the assistance of independent legal and financial advisors.

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The committee will also consider any other potential proposals or strategic alternatives available to the company.

The successful closure of the proposed transaction is contingent upon the approval of both the committee and the shareholders, excluding shares held by Iberdrola and its affiliates.

No definitive decision has been made regarding the company’s response to Iberdrola’s proposal, which remains non-binding and subject to withdrawal.

Avangrid, which is headquartered in Connecticut, operates in 24 US states with assets of $44bn. The business is split into networks and renewables. It was formed when Iberdrola USA acquired UIL Holdings in 2015.

It owns and operates eight electric and natural gas companies through its network business, serving three million customers in New York and New England. The company employs 8,000 people.

The US Bureau of Ocean Energy Management concluded its environmental review of Avangrid’s 2.6GW New England wind project in February 2023.

In the same year, the company and its partner Copenhagen Infrastructure Partners installed the first turbine at the 806MW Vineyard Wind 1 offshore wind farm.