Iberdrola to Buy UIL for $3 Billion for U.S. Expansion

An Iberdrola wind farm in Maranchon, near Calatayud, Spain.

Photographer: Angel Navarrete/Bloomberg
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Iberdrola SA, Spain’s largest electricity company, agreed to buy UIL Holdings Corp. in a deal valued at about $3 billion in cash and shares to create a U.S. utility with about 3.1 million customers.

UIL shareholders will get $52.75 a share comprising $10.50 cash and the rest in stock in the new company, Bilbao-based Iberdrola said in a statementBloomberg Terminal. At that value, the deal represents a 25 percent premium to UIL’s last closing price.