Maine Public Utilities Commission Approves Avangrid’s Request for Merger Exemption
The Maine Public Utilities Commission (PUC) has approved Avangrid's (NYSE: AGR) request for an exemption from approval requirements for a change in ownership. This decision is related to Iberdrola's acquisition of the remaining 18.4% of Avangrid's shares it doesn't currently own. The transaction will revert to Iberdrola's previously authorized 100% interest from 2008. The PUC relied on facts from Iberdrola's 2008 reorganization case, which included a 59-condition stipulation to protect Maine utilities and ratepayers. This approval follows the U.S. Federal Energy Regulatory Commission's recent approval and recommendations from Institutional Shareholder Services and Glass Lewis. The transaction is expected to close in Q4 2024, pending other approvals.
La Commissione Pubblica per le Utilities del Maine (PUC) ha approvato la richiesta di Avangrid (NYSE: AGR) per un'esenzione dai requisiti di approvazione relativi a un cambiamento di proprietà. Questa decisione riguarda l'acquisizione da parte di Iberdrola del rimanente 18,4% delle azioni di Avangrid che attualmente non possiede. La transazione ripristinerà l'interesse totale del 100% di Iberdrola autorizzato nel 2008. La PUC si è basata su fatti del caso di riorganizzazione del 2008 di Iberdrola, che includeva una stipulazione con 59 condizioni per proteggere le utilities e i consumatori del Maine. Questa approvazione segue quella recente della Commissione Federale Statunitense per la Regolamentazione dell'Energia e le raccomandazioni di Institutional Shareholder Services e Glass Lewis. Si prevede che la transazione si concluda nel quarto trimestre del 2024, in attesa di altre approvazioni.
La Comisión de Servicios Públicos de Maine (PUC) ha aprobado la solicitud de Avangrid (NYSE: AGR) para una exención de los requisitos de aprobación por un cambio de propiedad. Esta decisión está relacionada con la adquisición por parte de Iberdrola del 18,4% restante de las acciones de Avangrid que actualmente no posee. La transacción revertirá al interés total del 100% previamente autorizado a Iberdrola en 2008. La PUC se basó en hechos del caso de reorganización de Iberdrola de 2008, que incluía un acuerdo de 59 condiciones para proteger a las utilidades y a los consumidores de Maine. Esta aprobación sigue la reciente aprobación de la Comisión Federal de Regulación de Energía de EE. UU. y las recomendaciones de Institutional Shareholder Services y Glass Lewis. Se espera que la transacción se cierre en el cuarto trimestre de 2024, pendiente de otras aprobaciones.
메인 공공 유틸리티 위원회(PUC)는 아방그리드(뉴욕증권거래소: AGR)의 소유권 변경에 대한 승인 요구 사항 면제 요청을 승인했습니다. 이 결정은 아이베르드롤라가 현재 보유하지 않은 아방그리드 주식의 나머지 18.4%를 인수하는 것과 관련이 있습니다. 이 거래는 2008년에 아이베르드롤라가 승인한 100% 지분으로 돌아갈 것입니다. PUC는 메인주 유틸리티 및 소비자를 보호하기 위한 59가지 조건이 포함된 아이베르드롤라의 2008년 재조직 사건의 사실을 바탕으로 하였습니다. 이 승인은 최근 미국 연방 에너지 규제 위원회의 승인과 Institutional Shareholder Services 및 Glass Lewis의 권고에 따른 것입니다. 이 거래는 다른 승인 절차가 완료된 후 2024년 4분기에 마무리될 것으로 예상됩니다.
La Commission des services publics du Maine (PUC) a approuvé la demande d'Avangrid (NYSE: AGR) pour une exemption des exigences d'approbation concernant un changement de propriété. Cette décision est liée à l'acquisition par Iberdrola du reste de 18,4 % des actions d'Avangrid qu'elle ne possède pas actuellement. La transaction rétablira l'intérêt de 100 % d'Iberdrola préalablement autorisé en 2008. La PUC s'est appuyée sur des faits du cas de réorganisation d'Iberdrola de 2008, qui comprenait un accord comportant 59 conditions pour protéger les services publics et les consommateurs du Maine. Cette approbation fait suite à l'approbation récente de la Commission fédérale de régulation de l'énergie des États-Unis et aux recommandations d'Institutional Shareholder Services et de Glass Lewis. La transaction devrait être finalisée au quatrième trimestre 2024, sous réserve d'autres approbations.
Die Maine Public Utilities Commission (PUC) hat Avangrids (NYSE: AGR) Antrag auf eine Ausnahme von den Genehmigungsanforderungen für einen Eigentumswechsel genehmigt. Diese Entscheidung bezieht sich auf die Übernahme des verbleibenden Anteils von 18,4 % der Avangrid-Aktien durch Iberdrola, die derzeit nicht im Besitz von Iberdrola sind. Die Transaktion wird auf das 100%ige Interesse von Iberdrola zurückgeführt, das 2008 genehmigt wurde. Die PUC stützte sich auf Fakten aus dem Reorganisationsfall von Iberdrola aus dem Jahr 2008, der eine 59 Bedingungen umfassende Vereinbarung zum Schutz der Versorgungsunternehmen und Verbraucher in Maine beinhaltete. Diese Genehmigung folgt auf die kürzliche Genehmigung der U.S. Federal Energy Regulatory Commission sowie Empfehlungen von Institutional Shareholder Services und Glass Lewis. Der Abschluss der Transaktion wird für das 4. Quartal 2024 erwartet, vorbehaltlich weiterer Genehmigungen.
- Approval from Maine PUC for ownership change exemption
- U.S. Federal Energy Regulatory Commission approval already obtained
- Positive recommendations from Institutional Shareholder Services and Glass Lewis
- Expected transaction closure in Q4 2024
- Transaction still pending approval from New York Public Service Commission
- Avangrid shareholder approval still required
Insights
The Maine PUC's approval of Avangrid's exemption request is a positive development for the company's consolidation efforts. This decision streamlines the process for Iberdrola to acquire the remaining
The Maine PUC's decision to grant Avangrid's exemption request is legally significant. It demonstrates regulatory continuity, as the commission relied heavily on the 2008 reorganization case and its associated stipulations. The 59 conditions from the 2008 agreement, including reporting requirements and "ringfencing" provisions, remain in effect, providing robust consumer and utility protections. This approach by the PUC suggests a balanced consideration of corporate interests and public welfare. The exemption streamlines the regulatory process, potentially reducing legal and administrative costs for Avangrid. However, investors should be aware that this decision does not set a broad precedent, as the PUC noted this as a "rare case." The ongoing need for New York PSC approval and shareholder consent underscores the multi-jurisdictional nature of utility regulation in the U.S., which can impact transaction timelines and costs.
The Maine PUC's approval signals a positive market sentiment towards utility consolidation when proper safeguards are in place. This move aligns with broader industry trends of simplifying corporate structures to enhance operational efficiency. The support from proxy advisory firms ISS and Glass Lewis for the merger suggests strong institutional backing, which could influence retail investor sentiment positively. However, the market impact may be as Iberdrola already holds a majority stake. The transaction's minimal changes to existing operations and the continuation of previous protective measures may reassure investors about stability. Looking ahead, this consolidation could potentially position Avangrid for more aggressive clean energy initiatives, aligning with growing ESG investment trends. Investors should monitor how this ownership change might affect Avangrid's strategic direction, particularly in advancing sustainability goals, which could impact long-term valuation and market positioning.
The Maine Public Utilities Commission approved Avangrid’s request for an exemption from approval requirements for a change in ownership
In considering Avangrid’s request for exemption, commissioners and commission staff relied heavily on facts contained in Iberdrola’s 2008 reorganization case, which they described as “thoroughly litigated.” The 2008 transaction included a 15-page stipulation signed by nine parties, including the Office of the Public Advocate, that contained 59 conditions designed to protect
Today’s deliberation at the Maine PUC can be seen here.
According to the Examiner’s Report published by Maine Public Utilities Commission staff on August 26, 2024: “This is a rare case in which the Commission has previously approved the very same corporate organizational structure that the Petitioners now propose. That case was thoroughly litigated and resulted in the Commission’s approval of a stipulation that contained 59 numbered conditions of approval. The stipulation was joined by nine parties (as well as CMP, MNG, and Iberdrola, S.A.). Importantly, those conditions include both extensive reporting requirements and “ringfencing” conditions designed to protect the
Tuesday’s vote at the Maine PUC follows recent action by the
“We appreciate the Maine Public Utilities Commission’s thoughtful and transparent review of our petition,” said Pedro Azagra, Avangrid’s Chief Executive Officer. “As part of the Iberdrola Group, we are committed to continuing the advancement of our sustainability and clean energy goals, and ensuring the well-being of our customers in
The transaction is expected to close in the fourth quarter of 2024, subject to the satisfaction of other closing conditions, including receipt of the approval of the New York Public Service Commission and Avangrid shareholder approval.
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/20240917025391/en/
Analysts: Charlotte Ancel, Charlotte.Ancel@Avangrid.com, 203-997-7366
Media: Leo
Source: AVANGRID, Inc.
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