New Mexico Regulator Opposes Avangrid Acquisition of PNM Resources
December 09 2021 - 4:41AM
Dow Jones News
By Olivia Bugault
New Mexico regulators rejected the proposed acquisition of PNM
Resources Inc. by Iberdrola SA's U.S. unit Avangrid Inc.,
electricity services company PNM resources said early Thursday.
The New Mexico Public Regulation Commission unanimously voted to
deny the merger agreements reached by the companies involved, U.S.
company PNM Resources said.
Last year, the companies announced their plans to merge with
Avangrid offering to buy PNM resources for an enterprise value of
$8.3 billion.
PNM and Avangrid both said they were disappointed with the
decision. "We put forth an agreement that would strengthen New
Mexico's future as we partnered with a global company to meet the
challenges of climate change while ensuring affordable and reliable
service to PNM customers for years to come," PNM Resources Chief
Executive Officer Pat Vincent-Collawn said. Avangrid said it is
assessing its next steps.
"The reasons provided by New Mexican Commissioners are service
issue concerns due to Avangrid's operating record as well as a lack
of sufficient benefit to ratepayers," Royal Bank of Canada's
analysts said, adding that "now Iberdrola will have to say if it
will continue fighting for this acquisition or move on to other
opportunities."
The proposed merger had already been approved by several federal
agencies as well as the public utilities commission of Texas, PNM
Resources said.
Write to Olivia Bugault at olivia.bugault@wsj.com
(END) Dow Jones Newswires
December 09, 2021 05:26 ET (10:26 GMT)
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