Iberdrola has abandoned a major acquisition that would have accelerated its growth in the United States, one of the company’s key markets. Iberdrola’s US subsidiary Avangrid and PNM Resources decided to terminate the agreement fusion The operation, which was announced in October 2020 and had a value of 200 million lira, was terminated $8.3 billion (about 7.5 billion euros) and with this they would create an electric giant in the USA.
After more than three years of negotiations and two extensions of the integration agreement, the companies opting out of applying a new extension (The agreement expired on December 31, but he considered the possibility of extending it for another three months if both parties agreed).
The operation was vetoed by New Mexico state officials at the end of 2021. Avangrid service quality issues in other states and because of the reputational issue created by the alleged involvement of Iberdrola leadership in the so-called ‘Villarjo case’. The Iberdrola subsidiary and PNM Resources have waged a legal battle over the past two years to save the operation and overturn Management’s veto.
So far, both companies have remained on the defensive. sense of strategic integrationThis will create one of the largest companies in the North American sector, with ten regulated electric utilities in six states (New York, Connecticut, Maine, Massachusetts, New Mexico and Texas) and the third renewable energy operator in the country. With a total presence in 24 states.
“Avongrid, Inc., 81.5% of whose capital belongs to Iberdrola, SA, was acquired by PNM Resources, Inc. on this date. announced its decision to terminate the merger agreement signed on October 20, 2020. Failure to comply within the stipulated time In its letter to the CNMV, the Spanish electricity company explains: “For this purpose, the conditions provided here for the closure of the operation have been met.”