Iberdrola is set to take back control of its renewable energy subsidiary, Iberdrola Renovables, after the boards of the two companies approved plans for a merger deal.
The Spanish energy company says that the absorption of Iberdrola Renovables by its parent company will enable it to move forward with key projects, and benefit shareholders as well as generate cost savings.
Under the deal, Iberdrola will buy back the 20 per cent of shares in Iberdrola Renovables that it listed three years ago, exchanging 0.5045 shares for each Iberdrola Renovables share.
The deal requires shareholder approval.
Iberdrola said that the “significant change” that the renewable energy sector had undergone in the last three years was the main reason for its desire to regain control of Renovables. The merger would enable it to “directly manage” the development of its renewable energy activities and give it greater leverage in capital markets, the firm said in a statement.
