US$4.3 billion merger between Iberdrola, Avangrid, and PNM Resources blocked

Spain's Iberdrola has terminated its US$ 4.3 billion agreement to acquire Albuquerque-based utility PNM Resources.

The agreement was contingent on regulatory approval, and the New Mexico Public Regulation Commission (NMPRC) has voted against the planned acquisition. The NMPRC is expressing concerns about Avangrid's track record in reliability and customer service in other states of its operation. The proposed transaction involved the acquisition of PNM Resources and its subsidiaries, Public Service Co. of New Mexico and Texas New Mexico Power, by Avangrid, a Connecticut-based company. The all-cash deal, valued at over US$4.3 billion, aimed to pave the way for Spain-based Iberdrola and its American subsidiary Avangrid to participate in a state with significant potential for wind and solar power generation, which could be exported to larger markets. The comprehensive merger plan was initially formulated in 2020.