Avangrid, a subsidiary of Iberdrola, and PNM Resources extended their merger timeline by three months, moving the target date to July 20. The partnership aims to establish a leading energy company across the United States, with both organizations reporting steady progress toward closing the deal.
Avangrid chief executive Pedro Azagra emphasized the group’s continued commitment to the merger. The arrangement is projected to bring more than $300 million in benefits to customers and communities in New Mexico, while Texas customers would see rate reductions exceeding $16 million. Azagra noted that the fusion would support regional economic development and strengthen community welfare, urging sustained momentum toward completion.
Pat Vincent-Collawn, chairwoman and chief executive of PNM Resources, described the merger as a prudent path to a cleaner energy future and highlighted the additional advantages that would follow for customers and communities.
Both companies remain focused on achieving the merger while awaiting authorization from the appropriate state regulator, with operations expected to begin once approvals are in place. The process remains under regulatory review and could be adjusted as timelines evolve.
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 contest a dismissal and return the case to the regulator for reconsideration.
The motion is pending, and no court deadline has been set for a decision or any possible return to the regulator. In the meantime, both groups have extended the deadline by three months from the April 20 target, even as an earlier extension had already been granted for a potential close. [Cited: regulatory filings and court records]
Ignacio Sanchez Galan, who leads the Iberdrola group, remains focused on advancing the acquisition, signaling a major push to broaden the Spanish energy company’s footprint in the United States market.
In December 2021, the New Mexico state regulator rejected Iberdrola’s acquisition of PNM Resources. The five commissioners voted unanimously against the deal, citing concerns that the risks outweighed the stated benefits to state taxpayers. [Cited: NMPRC decision]
<h2>Major operation in the US market
The rejection represented a setback for Iberdrola’s plans to expand into a large market like the United States. The merger carried an implied business value of about $8.3 billion, adjusted for net debt and other factors to roughly €7.0 billion.
If completed, the acquisition would position the combined company as a major player in North America, with operations across ten regulated utilities in six states. It would rank among the top three renewable energy operators in the United States and would extend the group’s footprint to 24 states overall. [Cited: market analyses]
The merger received approvals from five federal agencies and the Texas Public Utilities Commission. Avangrid and PNM Resources, alongside the New Mexico Public Regulatory Commission, filed a joint motion in the New Mexico Supreme Court in March to challenge the regulator’s December 2021 decision and return the case to NMPRC for further proceedings. [Cited: regulatory actions]