Iberdrola’s Avangrid Ends Merger Deal with US Power Provider PNM
Iberdrola SA’s Avangrid Inc. has ended its merger deal with US power provider PNM Resources Inc. The merger was announced in October 2020 and was expected to close in the first half of 2021.
Background of the Merger
The merger was intended to create a leading US energy company with a combined market capitalization of $20 billion. Avangrid, a subsidiary of Iberdrola, is a diversified energy and utility company with operations in 24 states. PNM Resources is a holding company for two regulated utilities, Public Service Company of New Mexico and Texas-New Mexico Power Company.
The merger was expected to create a leading US energy company with a combined market capitalization of $20 billion. The combined company would have had a presence in 24 states and would have been the third-largest US electric and gas utility.
Reasons for Termination of the Merger
The merger was terminated due to the inability of the parties to reach an agreement on the terms of the merger. The parties had been in negotiations for several months but were unable to reach an agreement.
The merger was also terminated due to the fact that the US Federal Energy Regulatory Commission (FERC) had not yet approved the merger. The FERC had requested additional information from the parties in order to make a decision on the merger.
Impact of the Termination
The termination of the merger will have a significant impact on both companies. Avangrid will no longer be able to benefit from the synergies that the merger would have created. PNM Resources will also be unable to benefit from the increased scale and efficiency that the merger would have provided.
The termination of the merger will also have an impact on the customers of both companies. Customers of both companies will no longer be able to benefit from the increased efficiency and cost savings that the merger would have provided.
Future Outlook
The termination of the merger does not mean that the companies will not pursue other opportunities in the future. Avangrid and PNM Resources may still pursue other opportunities to create value for their customers and shareholders.
Avangrid and PNM Resources may also pursue other mergers and acquisitions in the future. The companies may look to acquire other companies in order to expand their operations and create value for their customers and shareholders.
Conclusion
Iberdrola’s Avangrid Inc. has ended its merger deal with US power provider PNM Resources Inc. The merger was terminated due to the inability of the parties to reach an agreement on the terms of the merger and the fact that the US Federal Energy Regulatory Commission (FERC) had not yet approved the merger. The termination of the merger will have a significant impact on both companies and their customers. Avangrid and PNM Resources may still pursue other opportunities to create value for their customers and shareholders in the future.