Avangrid, a US-based subsidiary of the Spanish energy group Iberdrola, has terminated its planned acquisition of the New Mexico utility PNM Resources after failing to receive final approval for the US$8.3bn deal from state regulators.
The deal was unanimously approved by PNM's board in October 2020 and was aimed at creating a renewable energy operator with a combined market value topping US$20bn. However, the New Mexico Public Regulation Commission rejected the merger in December 2021. PNM and Avangrid had appealed the decision to the New Mexico Supreme Court in January 2022. The deal included Avangrid taking on US$4bn of PNM’s debt.
PNM Resources provides electricity to about 800,000 households and businesses in New Mexico and Texas. The company has a diverse mix of generation and purchased power resources totaling 2.7 GW of capacity, with a goal to achieve 100% emissions-free energy by 2040.