Iberdrola Completes $2.5 Billion Acquisition of CMP Parent Company
Iberdrola recently wrapped up its acquisition of the parent company of Central Maine Power, Avangrid, for a hefty $2.5 billion. The deal was finalized on Dec. 23, as confirmed by the Spanish energy giant in an official statement.
Before this latest buyout, Iberdrola already owned 81.6 percent of Avangrid’s stock. In June, it went ahead and acquired the remaining 18.4 percent, consolidating its control over the company. Both the Federal Energy Regulatory Commission and regulators in New York gave the acquisition their seal of approval, effectively transitioning Avangrid into a private entity.
As part of the acquisition deal, shareholders of Avangrid will receive $35.75 per share. Following this transaction, the company will no longer be listed on the New York Stock Exchange.
Maine’s Public Utilities Commission made a milestone decision in September when they waived the requirement for their approval of the acquisition. Commission Chair Phil Bartlett and Commissioner Patrick Scully pointed out that Iberdrola had already gained a 100 percent stake in Energy East, the former parent company of CMP, back in 2008.
Despite some opposition from groups such as Maine Public Advocate William Harwood and consumer organizations, the acquisition went through. These opponents raised concerns that turning the publicly traded Avangrid into a private entity could exempt it from disclosing certain financial records to the Securities and Exchange Commission.
Former Maine PUC Chair Sharon Reishus reassured the public earlier this year that the commission would still maintain significant regulatory authority over CMP, ensuring continued oversight of the utility company.
