The regulator of the State of New Mexico has overturned the purchase by Iberdrola, through its subsidiary Avangrid, de PNM Resources, the great operation of the Spanish energy company to accelerate its growth in the United States market.
The no to the operation has been unanimous on the part of the five members of the commission, they have deemed that the risks of the deal outweigh the benefits promised to state taxpayers.
In this way, the group chaired by Ignacio Sánchez Galán suffers a setback in his big operation in a market like the United States, which assumed an implicit company value of approximately 8,300 million dollars (about 7,007 million euros), considering a net debt plus adjustments of approximately 4,000 million dollars (about 3,377 million euros).
The acquisition involved the creation of one of the largest companies in the North American sector, with ten electricity companies regulated in six states (New York, Connecticut, Maine, Massachusetts, New Mexico, and Texas) and the third largest renewable operator in the country, with a total presence in 24 states.
Iberdrola sources showed Europa Press their “disappointment” for this decision “unfair“and indicated their intention to appeal to the Supreme Court.
In this sense, they recalled that the operation had already had the approval in all previous permits from different organizations and with the support of interest groups. “We look forward to welcoming the Avangrid family to New Mexico one day,” they added.
For its part, PNM Resources Chairman and CEO Pat Vincent-Collawn was disappointed in the regulator’s decision and it considered that “the merits of the agreements reached by the parties had not been taken into account and the request to hear oral arguments was also rejected.”
“We presented an agreement that would strengthen the future of New Mexico by partnering with a global company to address the challenges of climate change while ensuring affordable and reliable service for PNM customers for years to come,” he lamented in a statement.
A total of five federal agencies and the Texas Public Utilities Commission had already completed their reviews and approved the merger., thus leaving the New Mexico Public Regulation Commission as the only remaining approval required for operation.
Before this final vote of the New Mexico State commission, the members of the body had already shown your doubts in supporting the operation due to concern about Avangrid’s public service record in Maine already the investigation in Spain to Iberdrola for the Villarejo case.
The combination of Avangrid and PNM, with approximately 4.1 million supply points, a regulated asset base (RAB) of approximately 14.4 billion dollars (about 12,157 million euros), more than 168,000 kilometers of distribution and transmission networks and approximately 10.9 gigawatts (GW) of installed capacity, was going to accelerate the growth of the Iberdrola Group in the United States.