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.
