The shareholders of the US power company PNM Resources voted today in favor of its integration into Avangrid, Iberdrola’s subsidiary in the US, an operation announced last October. The implied enterprise value would be about 7 billion euros (8.3 billion dollars).
Approximately 93% percent of the votes cast approved the proposed merger agreement, representing approximately 70% of the shares issued and outstanding on the registration date.
The operation will give rise to one of the largest companies in the North American sector with ten regulated electricity companies in six states (New York, Connecticut, Maine, Massachusetts, New Mexico and Texas) and the third renewable operator in the country, with a total presence in 24 states .
The combination of Avangrid and PNM, with approximately 4.1 million supply points, a regulated asset base of approximately 12,000 million euros, more than 168,000 kilometers of distribution and transmission networks and approximately 10.9 GW of installed capacity (at 2019), will accelerate the growth of the Iberdrola group in the United States. The merged company will have assets of over 33,500 million euros, will have approximately an Ebitda of 2,100 million and a net profit of 710 million (with pro forma 2019 data), according to Iberdrola.
New Mexico and Texas are also known states for Iberdrola. It currently has 1,900 MW renewable and 1,400 MW in its portfolio, in addition to having started commercial activity in Texas. For more than 15 years, the Iberdrola Foundation has financed the “King Felipe VI in Information Technology and its applications” chair at the University of New Mexico.
The transaction – which already has the approval of the Committee on Foreign Investment in the United States (CFIUS) and Hart Scott Rodino Clearance (HSR) – expects to have achieved all the necessary approvals at the state and federal level throughout 2021.
The president of the Iberdrola group, Ignacio Galán, stressed that “the support of PNM shareholders is an important step in making this strategic transaction a reality, which will mean the creation of a leader in the networks business, one of the pillars of the international growth of Iberdrola group for more than 20 years ».
For his part, the CEO of Avangrid, Dennis V. Arriola has indicated that both companies share the same values ”and the vocation to serve our clients and the communities we serve.”