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April 6, 2021

Avangrid clears hurdle toward $8.3B merger

PHOTO | New Haven BIZ Avangrid’s headquarters in Orange.
By Michelle Tuccitto Sullo

Orange-based utility giant Avangrid is a step closer to merging with PNM Resources, an energy holding company headquartered in Albuquerque, New Mexico. 

PNM provides electricity to approximately 800,000 homes and businesses in both New Mexico and Texas. The Texas-New Mexico Power Co., or TNMP, is its utility subsidiary.

Avangrid originally announced the planned merger last October. The cash offer is for PNM’s shares at $50.30 per share, for a $8.3 billion deal. 

Avangrid and TNMP this past week reached a unanimous settlement with the staff of the Public Utility Commission of Texas for the merger plan. The commission is expected to consider the settlement in the coming weeks. 

Dennis V. Arriola, Avangrid’s CEO, said in an announcement the company is “pleased with the Texas settlement milestone” and with Avangrid’s progress toward obtaining all the required regulatory approvals for the deal.

“We are hopeful the unanimous settlement will result in approval of the combination between PNM Resources and Avangrid,” Arriola said.

The Federal Communications Commission and PNM Resources’ shareholders have already approved the merger. Avangrid is still pursuing other necessary regulatory approvals, including from the Nuclear Regulatory Commission, Federal Energy Regulatory Commission and New Mexico Public Regulation Commission.

According to Avangrid, it anticipates the deal being finalized in the second half of 2021.

Avangrid’s utilities currently operate in four states, including in New York and New England. This merger would add two more states, New Mexico and Texas, to its utility network.

Avangrid is the parent company of Southern Connecticut Gas, Connecticut Natural Gas, and United Illuminating. The gas companies serve approximately 360,000 residential, commercial and industrial customers in Connecticut, while United Illuminating provides electricity to some 328,000 customers in greater New Haven and Bridgeport.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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