The New Mexico regulator demolishes Iberdrola's large operation to grow in the US

The regulator of the State of New Mexico has overturned the purchase by Iberdrola, through its subsidiary Avangrid, of

, the large operation of the Spanish energy company to accelerate its growth in the United States market.

The no to the operation has been unanimous by the five members of the commission, who have considered that the risks of the agreement outweigh the benefits promised to state taxpayers.

In this way, the group chaired by

suffers a setback in its large operation in a market such as the United States, which supposed an implicit company value of approximately 8,300 million dollars (about 7,007 million euros), considering a net debt plus adjustments of approximately 4,000 million dollars (about 3,377 million euros).

The acquisition entailed the creation of one of the largest companies in the North American sector, with ten electricity companies regulated in six states (New York, Connecticut, Maine, Massachusetts, New Mexico and Texas) and the third largest renewable operator in the country, with a total presence in 24 states.

Iberdrola sources showed Europa Press their "disappointment" with this "unfair" decision and indicated their intention to appeal to the Supreme Court.

In this sense, they recalled that the operation had already had the approval in all previous permits from different organizations and with the support of interest groups.

"We look forward to welcoming the Avangrid family to New Mexico one day," they added.

For his part, the president and CEO of PNM Resources,

, expressed his disappointment at the regulator's decision and considered that "the merits of the agreements reached by the parties had not been taken into account and the request to hear oral arguments ".

"We presented an agreement that would strengthen the future of New Mexico by partnering with a global company to address the challenges of climate change while ensuring affordable and reliable service for PNM customers for years to come," he lamented in a statement.

A total of five federal agencies and the Texas Public Utilities Commission had already completed their reviews and approved the merger, leaving the New Mexico Public Regulation Commission as the only remaining approval required for operation.

Before this final vote of the New Mexico State commission, the members of the organization had already

in supporting the operation due to their concern about the record in Avangrid's public services in Maine and

The combination of Avangrid and PNM, with approximately 4.1 million supply points, a regulated asset base (RAB) of approximately 14.4 billion dollars (about 12,157 million euros), more than 168,000 kilometers of distribution and transmission networks and approximately 10.9 gigawatts (GW) of installed capacity, was going to accelerate the growth of the Iberdrola Group in the United States.

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