Avangrid, the US division of Spanish energy company Iberdrola, announced on Tuesday it has terminated an agreement to acquire New Mexico-based electricity provider PNM Resources after the companies failed to win New Mexico regulatory approval.
The agreement, first announced in October 2020, would have given PNM an $8.3 billion enterprise value and created the third largest US renewables company with operations in 24 states.
"We are greatly disappointed with Avangrid's decision to terminate the merger agreement and its proposed benefits to our customers, communities and shareholders," PNM Resources CEO Pat Vincent-Collawn said in a statement.
"We look to build upon our strong track record of delivering financial results and continue to target long-term earnings growth of 5%."
All other federal and state approvals had been received in 2021, PNM Resources stated.
Failure to complete the deal is seen as a major blow to Iberdrola’s ambitions to expand its operations in the US, Bloomberg reported.
Avangrid said it intends to continue to focus on its growth opportunities.
Shares of PNM Resources have fallen 15% over the past year.