Connecticut authority backs Iberdrola bid to acquire UIL companies

The Connecticut Public Utilities Regulatory Authority (PURA) on Dec. 21 issued a final ruling approving a change of control whereby the UIL companies – United Illuminating, the Southern Connecticut Gas Company, and the Connecticut Natural Gas Company – will become subsidiaries of Spain-based Iberdrola.

The total consideration to be paid by Iberdrola USA is approximately $3B and involves exchange of each UIL share for one share of IUSA common stock along with a $10.50 premium.

A June 2015 preliminary PURA ruling found that Iberdrola had not met certain public interest standards in its bid to acquire the UIL companies. Iberdrola and UIL subsequently withdrew their request and filed a revised application in July that sought to address areas of concern PURA identified in its preliminary ruling.

In September, Iberdrola, UIL and the Office of Consumer Counsel submitted to PURA a proposed settlement agreement that further attempted to resolve outstanding issues.

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