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February 3, 2021updated 12 Nov 2021 10:06am

Avangrid receives clearance for PNM Resources acquisition

US-based renewable developer Avangrid has obtained clearance for its proposed acquisition of energy holding company PNM Resources in New Mexico.

By Umesh Ellichipuram

US-based renewable developer Avangrid has obtained clearance for its proposed acquisition of energy holding company PNM Resources in New Mexico.

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The Committee on Foreign Investment in the US (CFIUS) approved the transaction following Avangrid ’s announcement to acquire PNM Resources in October last year.

For the deal, PNM’s shareholders will receive $50.30 per share, which implies an $8.3bn enterprise value.

Avangrid CEO Dennis Arriola said: “With the CFIUS clearance and last week’s expiration of the legally obligated waiting period, Avangrid is making good progress in its journey to complete the merger with PNM Resources .

“We remain optimistic that all necessary approvals can be obtained to finalize the merger within the second half of 2021.”

The company still needs approvals from the Federal Energy Regulatory Commission, the Federal Communications Commission, and the Nuclear Regulatory Commission, the New Mexico Public Regulation Commission and the Public Utility Commission of Texas.

Commercially, the transaction remains subject to approval from PNM’s shareholders.

The CFIUS clearance comes after the end of its initial review period and indicates that the organisation has not identified any unresolved national security concerns regarding the transaction.

Upon completion of the deal, PNM will be integrated into Avangrid , creating one of the largest companies in the US utility industry and the third largest renewable energy operator with operations in 24 states.

The combined entity of Avangrid and PNM will have a regulated asset base of $14.4bn. It will have more than 168,000km of networks and approximately 10.9GW of installed capacity, managing more than 4.1 million supply points.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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