Iberdrola launches US expansion with $3bn purchase

Galan

Spanish utility Iberdrola is to buy UIL Holdings Corp for in the region of $3bn to create a new listed power and electric utility and expand in the United States.

“The transaction integrates Iberdrola USA and UIL, is consistent with group strategy and creates a significant company in the United States, a key market in which we are taking a major step forward,” said Ignacio Galan, Iberdrola’s chairman.
Galan
Galan has responded to a difficult time for the company in local and European markets, with Spanish energy reforms wiping out EUR1.4bn from Iberdrola’s earnings since 2011.

As a result, the company, a world leader in wind turbines, has opted to cut domestic investments drastically and boost exposure abroad.

The new company will serve 3.1 million electric and gas customers across New York, Connecticut, Maine and Massachusetts and would invest $6.9bn in electric and gas infrastructure over the next five years, the companies said.

The deal is expected to close by the end of 2015.

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