Acquirer: Avangrid, Inc. (U.S.); Iberdrola, S.A. (Spain)
Acquired: PNM Resources, Inc. (U.S.)
Value: $4.3 billion
Industry Tags: Energy; Regulated Utilities; Infrastructure
On October 20, 2020, PNM Resources, Inc., a publicly traded (NYSE: PNM) New Mexico corporation, entered into a merger agreement with Avangrid, Inc., a publicly traded (NYSE: AGR) New York corporation, pursuant to which PNMR Resources would become a direct wholly-owned subsidiary of Avangrid. (See PNM Resources, Inc., Form 8-K, Oct. 21, 2020, SEC Filing.) PNM Resources “is an energy holding company based in Albuquerque, N.M., with . . . approximately 2,811 megawatts of generation capacity and provides electricity to approximately 790,000 homes and businesses in New Mexico and Texas.” (Press Release, PNM Resources, Inc., Form 8-K, Ex-99.1, Oct. 21, 2020, SEC Filing.) Avangrid, Inc., is a sustainable energy company “that holds the U.S. energy operations of its parent, Iberdrola,” a Spanish multinational electric utility company based in Bilbao, Spain. (Id.) “New combined company’s largest shareholder will be Iberdrola, S.A., the third largest electricity company in the world and a leading global renewable energy company.” (Id.)
The merger “is subject to the satisfaction or waiver of certain customary closing conditions, including, without limitation, . . . the receipt of certain required regulatory approvals (including the . . . the Committee on Foreign Investment in the United States (CFIUS)) . . . .” (See PNM Resources, Inc., Form 8-K, Oct. 21, 2020, SEC Filing.) “Shareholders approved the merger on February 12, 2021. Clearances have been received from the Department of Justice under the Hart-Scott-Rodino Act, the Committee on Foreign Investment in the United States (CFIUS), the Federal Communications Commission and the Federal Energy Regulatory Commission. Approvals continue to be pursued from the Nuclear Regulatory Commission, Public Utility Commission of Texas and New Mexico Public Regulation Commission.” (First Quarter Results, PNM Resources, Inc., Form 8-K, Ex-99.1, Apr. 30, 2021, SEC Filing; see Press Release, PNM Resources, Inc., Form 8-K, Ex-99.1, Feb. 16, 2021, SEC Filing.)
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