Avangrid Inc. announced on October 21, 2020 that it is planning to acquire Public Service of Company of New Mexico (PNM) Resources, New Mexico’s largest electric utility company, in a $4.3 billion transaction.[1] The transaction represents a combined $8.3 billion enterprise value. The merger would cement Avangrid as the third-largest renewable energy operator in the U.S. with renewable operations in 24 states. The combined entity would also own 10 regulated utilities in six states. Avangrid estimates that the combined company would have nearly 11,000 MW of generation capacity in its portfolio, including more than 7,600 MW of that coming from wind. Both companies plan on transitioning to lower-carbon energy. Avangrid has pledged to be carbon neutral by 2035. PNM has said it plans to provide 100% emissions-free power by the end of 2040 which would be 5 years ahead of New Mexico’s zero-carbon resources deadline.

The boards of each company have approved the merger, and Avangrid and PNM Resources hope to close their deal by the end of 2021, though the proposal must pass federal and state regulatory bodies. The proposal includes an all-cash offer for PNM Resources at $50.30/share which essentially cashes out existing investors in PNM Resources.

[1] https://www.businesswire.com/news/home/20201021005299/en