Iberdrola’s Investment Strategy: Focus on the US Market
In a strategic decision, the energy company Iberdrola has announced its intention to reinvest part of the $5.7 billion generated by the sale of its business in Mexico into its US subsidiary, Avangrid. This choice highlights Iberdrola’s strong commitment to the US market, with an investment of $2.486 billion.
Purchase Offer and Investment Details
As part of its expansion strategy, Iberdrola has launched an offer to acquire 18.4% of Avangrid’s capital at a competitive price of $34.25 per share, representing a 10% increase compared to the weighted average price of the last 30 days. Currently, Iberdrola owns approximately 81.6% of the US subsidiary.
The main objective of this transaction is to strengthen Iberdrola’s presence in the US network market. Avangrid, based in Connecticut, has assets valued at $44 billion and operates in 24 states across the country. Its main areas of focus include networks and renewable energies, serving over 3.3 million customers in New York and New England.
In 2023, Avangrid reported an impressive adjusted gross operating profit (ebitda) of $2.43 billion, surpassing the previous year’s figure of $2.246 billion.
Strategic Commitment to Energy Transition
The upcoming presentation of Iberdrola’s strategic plan on March 21 is expected to highlight a significant investment in networks, a key element to drive energy transition and sustainability initiatives.
