Iberdrola has cemented its status in the US renewables market by acquiring regulated utilities arm PNM Resources in a deal worth US$8.3 billion.
PNM Resources, which holds Texas- and New Mexico-facing utilities PNM and TNMP, will be merged into Iberdrola’s existing US utility Avangrid, which already operates in some 24 states. PNM also holds 2.8GW of generation capacity, which will add to Avangrid’s 8.1GW.
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PNM shareholders are to receive US$4.3 billion in cash, with net debt and other adjustments with a value of US$4 billion factored into the overall enterprise value of the transaction.
Iberdrola said the deal would accelerate the company’s growth in the US, where it is establishing a sizeable pipeline of renewable projects, including utility-scale solar arrays.
It will also see Iberdrola double down on New Mexico and Texas, markets where the Spanish energy giant already has 1.9GW of renewable energy capacity and a further pipeline of 1.4GW.
Ignacio Galán, Chairman & CEO of Iberdrola and Chairman of Avangrid, said the deal aligns with the company’s broader strategy of friendly transactions in the field of renewable energy.