View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
February 15, 2021

Shareholders of PNM Resources approve merger deal with Avangrid

Shareholders of US-based energy holding company PNM Resources have approved the previously announced merger deal with Avangrid.

By Umesh Ellichipuram

Shareholders of US-based energy holding company PNM Resources have approved the previously announced merger deal with Avangrid.

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

As per the terms of the proposed merger, New Mexico company PNM Resources shareholders will receive $50.30 in cash for each share. This implies an $8.3bn enterprise value of the company.

PNM Resources president and CEO Pat Vincent-Collawn said: “We are delighted by the overwhelming shareholder support of this merger.

“We remain focused on the ultimate goal of this merger to provide benefits to customers, employees and communities by advancing our utilities into the clean energy future.

“We continue to move forward on the remaining regulatory approvals in New Mexico and Texas, along with federal approvals, to realize these benefits for our stakeholders.”

The merger was approved at a special shareholders meeting, where 93% voted in favour of the proposed agreement. This reflects approximately 70% of shares issued and outstanding on the record date.

A PNM Resources spokesperson said that the merger deal has already received clearances under the Hart-Scott-Rodino Act and the Committee on Foreign Investment in the United States.

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

The merger deal will be completed in the second half of this year, subject to the satisfaction or waiver of the remaining customary conditions to closing.

Avangrid obtained clearance for its proposed acquisition of PNM Resources in New Mexico earlier this month. The Committee on Foreign Investment in the US approved the transaction after Avangrid’s announcement.

Upon completion of the deal, the merged companies will form one of the largest companies in the US utility industry and the third-largest renewable energy operator with operations in 24 states.

Related Companies

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology