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Electricity: the Spanish Iberdrola buys the American PNM Resources for 4.3 billion dollars

2020-10-21T09:58:19.750Z

PNM Resources will be integrated into Avangrid, the American subsidiary of the Spanish energy group, which will thus become "one of the most important companies in the sector in North America".



The Spanish energy group Iberdrola announced on Wednesday the acquisition of the American electricity operator PNM Resources for 4.3 billion dollars (3.6 billion euros).

Read also: Iberdrola: net profit in the second quarter weighed down by the pandemic but higher than expectations

This is a "

friendly operation, recommended by the board of directors of PNM

", which will value PNM, active in New Mexico and Texas, at "

about 8.3 billion dollars

" (6.9 billion euros), explains Iberdrola in a press release.

The merger "will

allow PNM shareholders to receive approximately $ 4.32 billion in cash,

" adds the group.

PNM Resources will be integrated into Avangrid, the American subsidiary of Iberdrola, which will thus become "

one of the most important companies in the sector in North America

", made up of ten electricity operators in six states, and the third largest operator in terms of renewable energy in the United States.

This operation "will

contribute positively to the results from the first year,

" says Iberdrola, which estimates that its American subsidiary thus enlarged will generate an annual net profit of 850 million dollars.

Read also: Iberdrola: 2019 net profit climbs thanks to Brazil and exceptional

The operation, which has yet to obtain the approval of the shareholders of PNM Resources and the regulatory authorities, should be finalized in 2021, forecasts Iberdrola.

Iberdrola's main markets are Spain, United Kingdom, Mexico, United States and Brazil.

Source: lefigaro

All business articles on 2020-10-21

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