The Federal Energy Regulatory Commission has approved Spanish utility Iberdrola’s acquisition of the remainder of Avangrid’s outstanding shares in a deal valued at about $2.6 billion. 

Majority shareholder Iberdrola, which owns about 81.6% of U.S. renewables company Avangrid, said May 17 it would buy U.S. Avangrid’s remaining 18.4% of outstanding shares, which Avangrid doesn’t own.

Avangrid has $44 billion in assets and operations across 24 U.S. states and is building the nation’s first large-scale offshore wind project—Vineyard Wind offshore Massachusetts—with partner Copenhagen Infrastructure Partners along with three other offshore wind farms.

“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, Avangrid’s CEO. “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 fourth-quarter 2024, subject to the satisfaction of customary closing conditions, including receipt of the shareholder approvals and the approval of the Maine Public Utilities Commission and the New York Public Service Commission.

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