AVANGRID Receives Clearance From the Committee on Foreign Investment in the US (CFIUS) for PNM Resources Merger

Rhea-AI Summary

AVANGRID (NYSE: AGR) has received clearance from CFIUS concerning its proposed merger with PNM Resources (NYSE: PNM), indicating no national security concerns regarding the transaction. Following the recent expiration of the HSR Act waiting period, AVANGRID is optimistic about obtaining all necessary approvals to complete the merger in the second half of 2021. The merger, announced in October 2020, involves an all-cash offer of $50.30 per share, valuing the deal at $8.3 billion. Upon completion, the merged entity will be a significant player in the U.S. clean energy sector.

Positive

• CFIUS clearance received, indicating no national security concerns.
• Optimistic timeline for merger completion in the second half of 2021.
• Merger would create a major player in the U.S. clean energy market with ten regulated utilities in six states.

Negative

• None.

AVANGRID, Inc. (NYSE: AGR), a leading clean energy company, confirmed today that it has received clearance from the Committee on Foreign Investment in the United States (CFIUS) after the conclusion of the initial review period in relation to the proposed merger combination with PNM Resources (NYSE: PNM). The clearance received today indicates that CFIUS has not identified any unresolved national security concerns regarding the transaction.

“With the CFIUS clearance and last week’s expiration of the waiting period under the HSR Act, AVANGRID is making good progress in its journey to complete the merger with PNM Resources,” said Dennis V. Arriola, CEO of AVANGRID. “We remain optimistic that all necessary approvals can be obtained to finalize the merger within the second half of 2021.”

The company continues to pursue state and Federal regulatory approvals for the merger, including approvals from the Federal Energy Regulatory Commission, the Federal Communications Commission, and the Nuclear Regulatory Commission, as well as the New Mexico Public Regulation Commission and the Public Utility Commission of Texas. The agreement between AVANGRID and PNM Resources is also subject to approval by PNM Resources’ shareholders.

AVANGRID announced the strategic merger combination with PNM Resources in October 2020 in an all cash offer for PNM Resources’ shares at $50.30 per share, an $8.3 billion enterprise value transaction. The resulting entity would be one of the major clean energy companies in the US with ten regulated utilities in six states and the third largest renewables company with operations in 24 states.

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a leading, sustainable energy company with approximately $36 billion in assets and operations in 24 U.S. states. With headquarters in Orange, Connecticut, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs approximately 6,600 people. AVANGRID supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2019 and 2020 by the Ethisphere Institute. For more information, visit www.avangrid.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210202005742/en/

FAQ

What recent approval did AVANGRID receive regarding its merger with PNM Resources?

AVANGRID received clearance from CFIUS regarding its proposed merger with PNM Resources.

What is the value of the merger between AVANGRID and PNM Resources?

The merger is valued at $8.3 billion, with an all-cash offer of $50.30 per share for PNM Resources.

When does AVANGRID expect to finalize the merger with PNM Resources?

AVANGRID is optimistic about finalizing the merger in the second half of 2021.

How many states will the merged entity operate in?

The merged entity will operate in six states, with a significant presence in the clean energy market.