The Diplomat
Iberdrola is still willing to buy the US company PNM through its subsidiary Avangrid, which would make it the third largest renewables operator in the United States.
The Spanish energy group yesterday informed the Spanish Securities and Exchange Commission (CNMV) of the extension, until mid-April 2023, of the expiration date of the merger contract signed by both companies, extendable “under certain circumstances for an additional period of three months”.
The transaction was halted on December 8 by the New Mexico regulator, which considered that it was not the best option for consumers (due to problems of governance and quality of electricity supply) and alluded to the legal problems of several executives of the energy company – including its chairman, Ignacio Sánchez Galán – due to the Villarejo case to justify its decision.
Iberdrola announced yesterday that on Monday it had filed an appeal with the New Mexico Supreme Court against the regulator’s decision to halt the transaction, valued at 8.3 billion dollars (7.35 billion euros).
Iberdrola announced the acquisition of PNM Resources in October 2020, with the aim of creating one of the largest US energy companies, with a presence in six states – New York, Connecticut, Maine, Massachusetts, New Mexico and Texas – and the third largest renewables operator in the United States. The company resulting from the merger of Avangrid and PNM would have assets in excess of 40,000 million dollars (more than 33,700 million euros).
