World News – US – Breaking: Major utility to acquire PNM Resources in $ 4 3B offer

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New Mexico utility company’s high-voltage lines stretch across western Mesa (Photo from log file)

Albuquerque-based PNM Resources and Avangrid, a Connecticut-based utilities and renewable energy development company, announced an agreement early Wednesday morning for Avangrid to acquire PNMR for $ 4.3 billion

As part of the deal, unanimously approved by the boards of directors of both companies, Avangrid will acquire all of the outstanding shares of PNMR, paying shareholders $ 30 per share in cash – a 19Prime of 3 % on the 30-day average price of PNMR shares on October 20

PNMR and Avangrid are public companies whose shares are listed on the New York Stock Exchange

PNMR is the parent company of Public Service Co of New Mexico, the state’s largest public electricity generation, transmission and distribution utility, serving more than 530,000 customers statewide.It also owns Texas New Mexico Power, a transmission and distribution utility that provides electricity to approximately 260,000 customers in West Texas and southern New Mexico

PNMR and utilities acquired by national and international powerhouse Majority of Avangrid shares are owned by Spanish company Iberdrola, SUNE, a global mammoth ranked as the world’s third largest electricity company

Avangrid operates across the US It owns eight electric and natural gas utilities serving approximately 33 million customers in New York and three other northeastern states And it is a renewable energy company leading, which ranks third among wind developers in the country with more than 74 gigawatts of wind and solar installations installed across the country This includes around 19 GW of wind generation in New Mexico and Texas

The companies said the acquisition brought significant financial resources to PNMR, supported by Iberdrola’s global wealth. This, in turn, may help facilitate PNM’s efforts to replace its fossil fuel production in the New -Mexico through renewable resources over the next 25 years under the State’s Energy Transition Law, which requires the local utility to derive 50% of its electricity from renewable energy by 2030, 80% by 2040 and carbon-free production by 2045

In fact, the companies have underlined their « continued commitment » after the merger to move forward with the abandonment of the San Juan coal plant near Farmington in 2022, and to pursue an early exit from the merger. Four Corners coal-fired power plant nearby before 2031, when the co-ownership and coal supply agreements for this facility expire

PNM owns 200 megawatt stake in Four Corners plant The utility sees potential for additional savings for customers by leaving the plant earlier than 2031, opening the door to the introduction of more renewable resources on the grid in support of the energy transition law, companies said

« We are delighted to be part of this transaction which offers many benefits to our customers, communities, employees and shareholders, » said Pat Vincent-Collawn, President and CEO of PNMR in a statement

“Our combined companies offer greater investment opportunities in infrastructure and new technologies that will help us navigate our transition to clean energy while maintaining our commitments to our local teams and communities. »

Vincent-Collawn will be leaving the company after the transaction closes over the next year. The same will be true of Chuck Eldred, executive vice president for business development, and Patrick Apodaca, vice -President and General Counsel

But no layoffs are planned in either PNMR or its two utility subsidiaries, which together employ around 1,700 people, company spokesman Ray Sandoval said.

On the contrary, the merger could offer more jobs as Avangrid brings additional resources to finance investments in renewables, transmission and other infrastructure, said Sandoval

« The electric industry has become more difficult with the transition to clean energy, and for a company of our size, the investments required to achieve this are more difficult to manage, » said Sandoval « The merger is benefiting us by providing access to many more resources to continue the transition « 

<pS Department of Justice This process could take six to 12 months

By acquiring PNMR and its two utilities, Avangrid will secure a platform to expand its renewable energy development in the southwest, including next-generation and transportation assets, said Avangrid CEO , Dennis Arriola

« This merger between Avangrid and PNM Resources is a strategic fit and helps us to continue our growth in the distribution and transmission of clean energy, as well as to strengthen our growing leadership position in renewable energy, » said Arriola said in a press release “Our two companies also share the same values ​​because we are both passionate about our customers, our employees and the communities we serve. »

PNM and TNMP will remain based in New Mexico and Texas, and PNMR will continue to be managed locally, the companies said. Don Tarry, Chief Financial Officer of PNMR, will continue to oversee the operations of PNM and TNMP after the acquisition

Two current PNMR board members will join Avangrid’s board of directors, and another will join the board of Avangrid Networks, which oversees Avangrid’s utilities activities

PNMR executives are expected to discuss the acquisition deal during a conference call with investors on Wednesday morning

Iberdrola, NYSE: PNM, PNM Resources, Avangrid, renewable energy