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Oct 21, 2020 - Energy & Environment

A big renewables deal: Iberdrola's Avangrid to buy PNM Resources

Ben Geman
Animated gif of an earth lightbulb turning off

Illustration: Sarah Grillo/Axios

Avangrid, a subsidiary of Spanish energy giant Iberdrola, is buying the big New Mexico-based power company PNM Resources in a $4.3 billion deal.

Why it matters: The companies said the deal, valued at $8.3 billion including debt, will form the third-largest renewable power company in the United States.

  • The merged companies will have a combined market value of roughly $20 billion, per Reuters.

The big picture: The deal "reflects increasing focus on the transition to cleaner energy in the U.S., driven by economics favoring wind and solar farms over coal," Bloomberg notes.

  • PNM is a major power supplier in New Mexico and Texas, giving Avangrid "a route to expand its regulated business beyond the U.S. northeast," Reuters reports.

What's next: The companies hope to complete the transaction in about a year. It still requires approval by PNM shareholders and a suite of state and federal agencies.

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