The US unit of the Spanish energy firm Iberdrola, Avangrid on Tuesday announced the end of a merger deal with US based-energy holding company PNM Resources.
In a statement, Avangrid said that since 2020 it “fought” for regulatory approval of the deal and “has terminated the merger agreement because all final regulatory approvals were not received by December 31, 2023, the end date under the merger agreement.”
Both companies obtained all the necessary approvals for the closing of the merger by the end of 2022, except an approval from the New Mexico Public Regulation Commission, it added.
“With the close of 2023 there is still no clear timing on the resolution of the court review of the New Mexico regulator’s denial of the merger nor any subsequent regulatory actions,” the company said.
In a separate statement, the PNM Resources said that while its Board of Directors approved an extension, it was not accepted by Avangrid.
Citing PNM Resources Chairman and CEO, Pat Vincent-Collawn, the statement said: “We are greatly disappointed with Avangrid's decision to terminate the merger agreement and its proposed benefits to our customers, communities and shareholders.”
“As we move forward, our strategic plans remain focused on the infrastructure investments necessary to meet the future energy needs of our customers and communities. We look to build upon our strong track record of delivering financial results and continue to target long-term earnings growth of 5%.'
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr