(AOF) – PNM Resources (energy holding company based in New Mexico, United States) fell 5.08% to $39.16 following the termination of its merger agreement with Avangrid, a subsidiary of the Spanish giant in the sector of Iberdrola energy. Although the PNM Resources board approved an extension, it was not accepted by Avangrid, which terminated the merger. This operation, announced in October 2020, planned to integrate PNM Resources into Avangrid with a view to creating “one of the largest companies in the sector in North America”.
This merger was expected to bring PNM shareholders “around $4.32 billion in cash,” Iberdrola explained in 2020.
The American energy group did not obtain all the necessary regulatory approvals to complete this transaction before December 31.
Finalization of the merger agreement, initially scheduled for late 2021, had been postponed until December 31, 2023, pending a decision by the New Mexico Supreme Court on an appeal. filed in January 2022 by the New Mexico Public Regulation Commission. This Commission opposed the project.
“We are very disappointed in Avangrid’s decision to terminate the merger agreement and its proposed benefits to our customers, communities and shareholders,” said Pat Vincent Collawn, CEO of PNM Resources.
Despite the failure of the merger, PNM Resources wants to “continue to target long-term profit growth of 5%”
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