Avangrid Announces Receipt of Federal Energy Regulatory Commission Approval
Avangrid (NYSE: AGR) has received Federal Energy Regulatory Commission (FERC) approval for Iberdrola's acquisition of the remaining 18.4% of Avangrid's common stock. The transaction, approved by Avangrid's Board of Directors on May 17, 2024, is subject to several conditions, including shareholder approvals and regulatory clearances from Maine and New York utility commissions. CEO Pedro Azagra stated that this merger will enhance Avangrid's ability to expand renewable projects and invest in infrastructure improvements. The deal is expected to close in Q4 2024, strengthening Avangrid's capacity to meet growing demand for sustainable energy solutions and lead the clean energy transition in the United States.
Avangrid (NYSE: AGR) ha ricevuto l'approvazione della Federal Energy Regulatory Commission (FERC) per l'acquisizione da parte di Iberdrola del restante 18,4% delle azioni ordinarie di Avangrid. La transazione, approvata dal Consiglio di Amministrazione di Avangrid il 17 maggio 2024, è soggetta a diverse condizioni, incluse le approvazioni degli azionisti e le autorizzazioni normative delle commissioni per i servizi pubblici del Maine e di New York. Il CEO Pedro Azagra ha dichiarato che questa fusione migliorerà la capacità di Avangrid di espandere i progetti rinnovabili e investire nel miglioramento delle infrastrutture. Si prevede che l'accordo si concluda nel quarto trimestre del 2024, rafforzando la capacità di Avangrid di soddisfare la crescente domanda di soluzioni energetiche sostenibili e guidare la transizione verso l'energia pulita negli Stati Uniti.
Avangrid (NYSE: AGR) ha recibido la aprobación de la Comisión Federal Reguladora de Energía (FERC) para la adquisición del 18.4% restante de las acciones comunes de Avangrid por parte de Iberdrola. La transacción, aprobada por la Junta Directiva de Avangrid el 17 de mayo de 2024, está sujeta a varias condiciones, incluidas las aprobaciones de los accionistas y las autorizaciones regulatorias de las comisiones de servicios públicos de Maine y Nueva York. El CEO Pedro Azagra declaró que esta fusión mejorará la capacidad de Avangrid para expandir proyectos renovables e invertir en mejoras de infraestructura. Se espera que el acuerdo se cierre en el cuarto trimestre de 2024, fortaleciendo la capacidad de Avangrid para satisfacer la creciente demanda de soluciones energéticas sostenibles y liderar la transición hacia la energía limpia en los Estados Unidos.
Avangrid (NYSE: AGR)는 Iberdrola가 Avangrid의 보통주 18.4%를 인수하는 것에 대해 연방 에너지 규제 위원회(FERC)의 승인을 받았습니다. 이 거래는 2024년 5월 17일 Avangrid 이사회에서 승인되었으며, 주주 승인 및 메인주와 뉴욕주 유틸리티 위원회의 규제 승인을 포함한 여러 조건에 따라 진행됩니다. CEO 페드로 아자그라는 이 합병이 Avangrid의 재생 가능 프로젝트 확장 및 인프라 개선 투자 능력을 향상시킬 것이라고 밝혔습니다. 이 거래는 2024년 4분기에 종료될 것으로 예상되며, Avangrid가 지속 가능한 에너지 솔루션에 대한 증가하는 수요를 충족하고 미국에서 청정 에너지 전환을 주도할 수 있는 능력을 강화합니다.
Avangrid (NYSE: AGR) a obtenu l'approbation de la Federal Energy Regulatory Commission (FERC) pour l'acquisition par Iberdrola des 18,4% restants des actions ordinaires d'Avangrid. La transaction, approuvée par le conseil d'administration d'Avangrid le 17 mai 2024, est soumise à plusieurs conditions, notamment les approbations des actionnaires et les autorisations réglementaires des commissions des services publics du Maine et de New York. Le PDG Pedro Azagra a déclaré que cette fusion améliorera la capacité d'Avangrid à développer des projets d'énergie renouvelable et à investir dans des améliorations d'infrastructure. L'accord devrait être finalisé au quatrième trimestre 2024, renforçant la capacité d'Avangrid à répondre à la demande croissante de solutions énergétiques durables et à diriger la transition vers l'énergie propre aux États-Unis.
Avangrid (NYSE: AGR) hat die Genehmigung der Federal Energy Regulatory Commission (FERC) für den Erwerb der verbleibenden 18,4% der Stammaktien von Avangrid durch Iberdrola erhalten. Die Transaktion wurde am 17. Mai 2024 vom Vorstand von Avangrid genehmigt und unterliegt mehreren Bedingungen, einschließlich der Zustimmung der Aktionäre und regulatorischer Genehmigungen von den Versorgungsbehörden in Maine und New York. CEO Pedro Azagra erklärte, dass diese Fusion die Fähigkeit von Avangrid verbessern wird, erneuerbare Projekte auszubauen und in Infrastrukturverbesserungen zu investieren. Der Deal wird voraussichtlich im 4. Quartal 2024 abgeschlossen, was Avangrid helfen wird, der wachsenden Nachfrage nach nachhaltigen Energielösungen gerecht zu werden und den Übergang zu sauberer Energie in den Vereinigten Staaten zu leiten.
- FERC approval received for Iberdrola's acquisition of remaining Avangrid shares
- Potential for expanded renewable projects and infrastructure investments
- Expected to strengthen capacity to meet growing demand for sustainable energy solutions
- Transaction still subject to shareholder and additional regulatory approvals
- Potential concerns about reduced minority shareholder influence post-acquisition
Insights
The FERC approval marks a significant milestone in Iberdrola's bid to acquire the remaining
The FERC approval is a important regulatory hurdle cleared, but several legal challenges remain. The requirement for multiple shareholder approvals, including from minority shareholders, adds complexity to the transaction. This triple majority voting structure provides strong protection for minority interests, aligning with best practices in corporate governance. The pending approvals from the Maine Public Utilities Commission and New York Public Service Commission are critical, as these state-level regulators often scrutinize such transactions for potential impacts on local consumers and market competition. Investors should closely monitor these proceedings, as they could potentially delay or alter the terms of the deal.
Iberdrola's move to fully acquire Avangrid signals confidence in the U.S. clean energy market. This consolidation could enhance Avangrid's ability to expand renewable projects and invest in grid infrastructure, important for meeting the growing demand for sustainable energy. The transaction aligns with the broader industry trend of European utilities increasing their presence in the U.S. market. However, investors should consider potential challenges, such as regulatory scrutiny over foreign ownership of critical infrastructure and the need for significant capital expenditures to modernize the grid. The deal's success could position Avangrid as a stronger player in the U.S. energy transition, but execution risks remain in a rapidly evolving regulatory and technological landscape.
On May 17 , 2024, the Board of Directors of Avangrid, acting on the unanimous recommendation of the Unaffiliated Committee of the Board of Directors (the “Unaffiliated Committee”) that led the consideration of strategic alternatives and the negotiation of the terms of the transaction, unanimously approved the agreement, which is subject to a number of customary conditions, including affirmative votes of (1) the holders of a majority of all outstanding shares of common stock of Avangrid, (2) the holders of a majority of all outstanding shares of common stock held by Avangrid’s shareholders other than Iberdrola, its subsidiaries, and their controlled affiliates and (3) the holders of a majority of the outstanding shares of Avangrid common stock other than Iberdrola, Arizona Merger Sub, Inc., their affiliates, any members of the board of Avangrid who are employed by Iberdrola or its affiliates, any officer of Avangrid and any family members, affiliates or associates of the foregoing.
“This approval is an important step in the merger process, which will allow Avangrid to not only expand our renewable projects but also invest in our network’s business by investing in the infrastructure improvements needed to deliver reliable clean energy to the millions of customers we serve,” said Pedro Azagra, Chief Executive Officer of Avangrid. “This merger will strengthen our capacity to meet the growing demand for sustainable energy solutions and further our mission to lead the transition to a cleaner energy future in the United States.”
The transaction is expected to close in the fourth quarter of 2024, subject to the satisfaction of customary closing conditions, including receipt of the shareholder approvals described above and the approval of the Maine Public Utilities Commission and the New York Public Service Commission.
About Avangrid
Avangrid (NYSE: AGR) aspires to be the leading sustainable energy company in
About Iberdrola
Iberdrola, Europe’s largest electricity utility by market capitalization and one of the world's top three electricity companies, is a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include
The company has a workforce of over 42,200 and assets in excess of
Additional Information and Where to Find It
In connection with the proposed transaction, Avangrid has filed with the Securities and Exchange Commission (“SEC”) and has furnished to shareholders a proxy statement (the “Proxy Statement”) and Avangrid and Iberdrola have jointly filed a transaction statement on Schedule 13E-3 (the “Schedule 13E-3”). Avangrid or Iberdrola may also file other documents with the SEC regarding the proposed transaction. INVESTORS AND SHAREHOLDERS OF AVANGRID ARE URGED TO CAREFULLY READ THE PROXY STATEMENT AND THE SCHEDULE 13E-3 IN THEIR ENTIRETY AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE THEREIN BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION. Avangrid’s investors and shareholders may obtain free copy of the Proxy Statement and other documents free of charge on Avangrid’s website at www.avangrid.com. In addition, Avangrid’s investors and shareholders may obtain free copy of the Proxy Statement, the Schedule 13E-3 and other documents, once such documents are filed with the SEC (when available) from the SEC’s website at www.sec.gov.
Participants in the Solicitation
Avangrid and its directors, executive officers, other members of its management and employees may be deemed to be participants in the solicitation of proxies of Avangrid shareholders in connection with the proposed transaction under SEC rules. Investors and shareholders may obtain more detailed information regarding the names, affiliations and interests of Avangrid’s executive officers and directors in the solicitation by reading the Proxy Statement, Schedule 13E-3, the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as amended by the Form 10-K/A filed on April 26, 2024, and other relevant materials that will be filed with the SEC in connection with the proposed transaction when they become available. To the extent holdings of securities by potential participants (or the identity of such participants) have changed since the information printed in the Proxy Statement, such information has been or will be reflected on Avangrid’s Statements of Change in Ownership on Forms 3 and 4 filed with the SEC. Information concerning the interests of Avangrid’s participants in the solicitation, which may, in some cases, be different than those of the Avangrid’s shareholders generally, are set forth in the Proxy Statement.
Forward-Looking Statements
Certain statements in this report may relate to our future business and financial performance and future events or developments involving us and our subsidiaries that are not purely historical and may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terms such as “may,” “will,” “should,” “would,” “could,” “can,” “expect(s),” “believe(s),” “anticipate(s),” “intend(s),” “plan(s),” “estimate(s),” “project(s),” “assume(s),” “guide(s),” “target(s),” “forecast(s),” “are (is) confident that” and “seek(s)” or the negative of such terms or other variations on such terms or comparable terminology. These forward-looking statements generally include statements regarding the potential transaction between Avangrid and Iberdrola, including any statements regarding the expected timetable for completing the potential transaction, the ability to complete the potential transaction, the expected benefits of the potential transaction, projected financial information, future opportunities, and any other statements regarding Avangrid’s future expectations, beliefs, plans, objectives, results of operations, financial condition and cash flows, or future events or performance. Readers are cautioned that all forward-looking statements are based upon current reasonable beliefs, expectations and assumptions. Avangrid’s business, financial condition, cash flow, and operating results are influenced by many factors, which are often beyond its control, that can cause actual results to differ from those expressed or implied by the forward-looking statements. For a discussion of risk factors and other important factors affecting forward-looking statements, please see Avangrid’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filings and the information filed on Avangrid’s Forms 8-K with the SEC as well as its subsequent SEC filings, and the risks and uncertainties related to the proposed transaction with Iberdrola, including, but not limited to: the expected timing and likelihood of completion of the proposed transaction, including the timing, receipt and terms and conditions of any required shareholder, governmental and regulatory approvals of the proposed transaction that could reduce the anticipated benefits of, or cause the parties to abandon, the transaction, risks that an event, change or other circumstance could give rise to the termination of the merger agreement, risks that competing offers or acquisition proposals for Avangrid could be made, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that the proposed transaction and its announcement could have an adverse effect on the ability of Avangrid to retain and hire key personnel and maintain relationships with its customers and suppliers, and on its operating results and businesses generally, and litigation or administrative proceedings that may arise in connection with the proposed transaction. Other unpredictable or unknown factors not discussed in this communication could also have material adverse effects on forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements. Avangrid does not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Other risk factors are detailed from time to time in Avangrid’s reports filed with the SEC and we encourage you to consult such disclosures.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240905837064/en/
Analysts: Charlotte Ancel, Charlotte.Ancel@Avangrid.com, 203-997-7366
Media: Leo Rosales, Leo.Rosales@Avangrid.com, 518-419-2401
Source: AVANGRID, Inc.
FAQ
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