United Illuminating bought by Spanish company for $3 billion

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MADRID (AP) — Spain’s leading electricity and natural gas utility, Iberdrola, says it will buy the northeastern U.S. utility company UIL Holdings Corp. in a deal valued at about $3 billion.

Iberdrola SA and UIL say in a statement that the deal values UIL shares at $52.75, including $10.50 to be paid in cash for each share.

Shares of Iberdrola USA will be listed in the United States and UIL shareholders will receive a share for each UIL share they own.

The company will serve 3.1 million electric and natural gas customers in Connecticut, Maine, Massachusetts and New York.

The statement Thursday says Iberdrola USA’s utilities will be Berkshire Gas, Central Maine Power, Connecticut Natural Gas, New York State Electric & Gas, Rochester Gas & Electric, Southern Connecticut Gas and United Illuminating .