WASHINGTON – Iberdrola USA, the U.S. unit of Spain’s leading power utility, said it has agreed to acquire Connecticut-based UIL Holdings for roughly $3 billion.
UIL shareholders will receive a share in the newly listed U.S. publicly traded company resulting from the merger and $10.50 for every UIL share they hold, a proposed transaction that “implies total value per share to UIL shareholders of $52.75,” the companies said in a joint press release late Wednesday.
They said the agreement creates a diversified power and utility company in the U.S. Northeast.
“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,” Iberdrola Chairman Ignacio Sanchez Galan was quoted as saying.
“Iberdrola is an ideal long-term partner for our customers, our employees and the communities we serve,” said the president and CEO of New Haven, Connecticut-based UIL, James Torgerson, who will become the new company’s chief executive officer upon closing.
Iberdrola, which is among the world’s biggest power utilities, has expanded to become one of the largest operators in Britain, one of the largest wind energy producers in the United States, and the biggest private power producer in Mexico, the company says on its Web site.
It also says it has solidified its position as Brazil’s leading electricity distributor by number of customers.