PNM Resources Merges with spanish energy conglomerate

Avangrid is part of Iberdrola, based in Spain. From their website: Iberdrola is now a global energy leader, the number one producer of wind power, and one of the world's biggest electricity utilities in terms of market capitalisation. We have brought the energy transition forward two decades to combat climate change and provide a clean, reliable and smart business model.

Wednesday, October 21, 2020

From Avangrid: 

AVANGRID (NYSE: AGR), a leading sustainable energy company, and PNM Resources (NYSE: PNM) announced today that their respective boards have approved the merger of PNM Resources into AVANGRID.

Ignacio Galán, chairman of AVANGRID and chairman of IBERDROLA Group, said: "This transaction is a consequence of the IBERDROLA Group’s disciplined strategy followed over more than 20 years. This is a friendly transaction, focused on regulated businesses and renewables in highly rated states with legal and regulatory stability and predictability offering future growth opportunities."

Dennis V. Arriola, AVANGRID’s CEO who will continue as CEO of the combined Company said: “This merger between AVANGRID and PNM Resources is a strategic fit and helps us further our growth in both clean energy distribution and transmission, as well as helping to expand our growing leadership position in renewables.  Our two companies also share the same values as we both are passionate about our customers, employees and the communities we serve. In addition, both AVANGRID and PNM Resources are leaders in environmental, social and governance issues that impact our stakeholders.”

Pat Vincent-Collawn, chairman, president and CEO of PNM Resources stated: “We are excited to be part of this transaction that provides so many benefits to our customers, communities, employees and shareholders.  Our combined companies provide greater opportunities to invest in the infrastructure and new technologies that will help us navigate our transition to clean energy while maintaining our commitments to our local teams and communities.”

AVANGRID will add two independent board members from PNM Resources to its board of directors and one independent board member from PNM Resources will join the AVANGRID Networks board.

Key Highlights

  • The transaction is expected to be EPS accretive in the first full year after closing.  
  • As a result of PNM’s earnings from regulated distribution and transmission assets, it is expected that AVANGRID’s regulated earnings contribution post-transaction will exceed 80%.  This proportion of regulated earnings will support AVANGRID’s fast growing renewables business over the next decade.
  • The purchase price represents a premium of 10% over the PNM`s share price as of Tuesday 20th October and 19.3% over the average PNM share price during the 30 days prior to 21st  October. 
  • AVANGRID’s majority shareholder, Iberdrola, has provided the company with a funding commitment letter for the entire equity proceeds for the transaction. 
  • As a result of this transaction, PNM’s shareholders will receive approximately $4.318 billion in cash. 

The agreement between AVANGRID and PNM Resources is subject to approval by PNM Resources shareholders. In addition, the transaction will require approval from a number of state and federal regulators including the New Mexico Public Regulation Commission, Public Utility Commission of Texas, Federal Energy Regulatory Commission, Hart Scott Rodino Clearance, Committee on Foreign Investment in the United States, Federal Communications Commission and the Nuclear Regulatory Commission.  Regulatory approvals are expected to be completed in approximately 12 months.

AVANGRID currently owns 1,900 MW of renewable energy and a pipeline of 1,400 MW of renewables assets in New Mexico and Texas.  In addition, Iberdrola operates a retail business in Texas. For more than 15 years, Iberdrola has also funded the King Felipe VI Chair in the Department of Electrical and Computer Engineering at the University of New Mexico.

More from Local News

  • SJRMC & San Juan College agree to expand Nursing Program

    Full-time nursing faculty members will receive a $10,000 annual stipend on top of their base salary to enhance the program’s capacity. In addition, students will have an opportunity to enter into an agreement with SJRMC to receive a substantial $4,800 living stipend per semester,

  • Downtown Farmington gets National Main Street Accreditation

     Historic Downtown Farmington’s performance was evaluated through assessments conducted by the organization’s personnel and board of directors, and New Mexico MainStreet, which works in partnership with Main Street America to identify local programs that meet rigorous national community evaluation standards.

  • Man Arrested for Fruitland Murder

     Following verbal arguments at the house of Adrian Begay (age 45), De Andre Julian (age 23) left with his girlfriend, Adrian Begay’s daughter, Adriana Begay (age 21) to a nearby residence. Adrian Begay followed them to the exterior of the residence when De Andre Julian produced a handgun and shot Adrian Begay multiple times in the chest at close range.

  • Arrest Made in Farmington Killing

    After a lengthy investigation, Ms. Greenfield’s death was determined to be a homicide and detectives identified 27-year-old Serrono Rippingale as the suspect. On June 26th, 2025, an arrest warrant for Murder (2nd degree felony) and Tampering with Evidence (3rd degree felony) was obtained and served on Serrono Rippingale.

  • Farmington Hires New Museum Director

     “Nathan’s expertise in the museum industry, combined with his global perspective and passion for community engagement, make him a tremendous asset to Farmington,” said Christa Chapman, Director of Cultural Affairs. “We’re excited to see how his leadership will shape the future of the Farmington Museum System.”

  • Two Dead after Officer-Involved Shooting in Farmington

    According to initial witness statements, the male subject was in the passenger seat of a vehicle being driven by a female. Witnesses reported that the vehicle moved toward law enforcement officers while the male subject attempted to climb into the driver’s seat. Shots were fired by U.S. Marshals during the incident. Both the male subject and the female driver were pronounced dead at the scene. No law enforcement personnel were injured.

On KSJE Now:

Today's Weather

  • Farmington, NM

    Sunny

    High: 93°F | Low: 55°F

  • Durango, CO

    Sunny intervals

    High: 90°F | Low: 46°F

  • Shiprock, NM

    Sunny

    High: 97°F | Low: 57°F

  • Cortez, CO

    Sunny

    High: 91°F | Low: 54°F

  • Santa Fe, NM

    Sunny

    High: 90°F | Low: 61°F