The board of directors of Avangrid, a subsidiary of Iberdrola, has approved the acquisition of PNM by Avangrid. This friendly transaction, recommended by PNM's board of directors, will be effected via merger.
PNM's shareholders will receive US$ 4.3 billion in cash. It implies an enterprise value of approximately US$ 8.3 billion. The combination of Avangrid and PNM, with over 4.1 million points of supply, regulated asset base (RAB) of US$ 14.4 billion, more than 168,000 Km of networks and approximately 10.9GW of installed capacity (as of 2019), will accelerate Iberdrola Group's growth in the USA.
The agreement between Avangrid and PNM, is subject to approval by PNM shareholders. As PNM and its subsidiaries operate in a regulated sector, the relevant authorizations at state level (New Mexico Public Regulation Commission and Public Utility Commission of Texas) and Federal level (Federal Energy Regulatory Commission, Hart Scott Rodino Clearance, Committee on Foreign Investment in the United States, Federal Communications Commission and Nuclear Regulatory Commission) will be required. This process is expected to be completed in 2021.
