avangridUS subsidiary iberdrola, and PNM Resources gave themselves three more months until July 20. complete your mergerwhich will result in ‘energy giant in the countryBoth companies reported.
Pedro Azagra, Avangrid’s CEO, noted that the energy company “continues to stick to the merger.” It will bring in more than $ 300 million (271.32 million euros) benefits to customers and communities in New Mexico and more than $16 million (approximately €14.47 million) rate cuts to customers in Texas.” “Through this fusion, We will contribute to the economic development of the regions and support their vitality and welfare. keep going,” he said.
Pat Vincent-Collawn, chairman and CEO of PNM Resources, estimated that the merger with Avangrid “continues to be the right path to achieve a success”. clean energy future and provide additional benefits to our customers and communities.”
In this way, both companies continue their merger goal until the authorization is reviewed by the state regulator, after the operation ceases at the end of 2021.
PNM Resources and Avangrid, together with the New Mexico Public Regulatory Commission, filed a joint motion in the New Mexico Supreme Court in March to reject the dismissal, thereby returning the case to the regulator.
This motion is still pending and there is no legal deadline for the court’s decision or possible extradition action to the regulator, so both groups have given themselves an additional three months from this April 20 deadline. -although an additional three-month period was already granted- the merger was set to close.
The group he headed Ignacio Sanchez Galan continues on its way with the aim of realizing this purchase. This means major operation to accelerate the Spanish energy company’s growth in the United States market.
In December 2021, the New Mexico State regulator reversed Iberdrola’s acquisition of PNM Resources. The five members of the commission, who felt that the risks of the deal exceeded the benefits promised to state taxpayers, voted unanimously no to the operation.
Major operation in the US market
This refusal meant a setback in Iberdrola’s plans for major operations in a market like the United States. merger with an implied business value of approximately $8.3 billion (approximately €7.007 million), taking into account net debt plus adjustments of approximately $4,000 million (approximately €3,377 million).
The acquisition will mark the establishment of one of the largest companies in the North American sector, with ten regulated utilities in six states (New York, Connecticut, Maine, Massachusetts, New Mexico and Texas) and the third largest renewable energy operator in the country. With a total presence in 24 states.
Merger received received approval from five federal agencies and the Texas Public Utilities Commission. Avangrid and PNM Resources, together with the New Mexico Public Regulatory Commission (NMPRC), filed a joint motion in the New Mexico Supreme Court in March to reject the regulator’s December 2021 rejection and return the case to NMPRC.