The Diplomat
Iberdrola has resigned from a contract with US company PNM Resources for breach of preconditions, which will prevent it from going ahead with its big deal to create an energy ‘giant’ in the United States.
Avangrid, Iberdrola’s U.S. subsidiary, has announced the termination of its merger contract with PNM Resources for failure to comply with the conditions set for the closing of the transaction, as reported by the energy company to the National Securities Market Commission (CNMV), as reported by the agency Europa Press.
In a statement, Avangrid said it has terminated the merger agreement because not all final regulatory approvals were received before December 31, 2023, the date of completion of the agreement, after which both companies could terminate the merger agreement if it had not yet been consummated.
In this way, the group presided by Ignacio Sánchez Galán renounces what was going to be its great operation to create an energy ‘giant’ in the United States with a market value after the merger of more than 20 billion dollars (some 18,14 billion euros).
