July 12, 2012 / 6:43 AM / 6 years ago

Iberdrola sells 2 US subsidiaries to Direct Energy

MADRID, July 12 (Reuters) - Spanish energy company Iberdrola has agreed to sell two U.S.-based subsidiaries, Energetix Inc and NYSEG Solutions Inc to Direct Energy Services for $110 million, Iberdrola said on Thursday.

Iberdrola reached an agreement on Wednesday with U.S. firm Direct Energy Services for the two New York-based subsidiaries, which provide gas and electricity to retail clients, the company said in the statement.

Iberdrola’s chairman Ignacio Galan said in May that the firm would sell assets, cut investments and improve efficiency to reduce its debt to below 30 billion euros ($36.75 billion) in 2012, down from 31.7 billion euros in 2011.

The decision marked a change in Iberdrola’s growth strategy and reflects the debt-cutting priorities of many Spanish firms burdened with high debts after enjoying cheap credit in the boom years of the late 1990s and early 2000s.

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