Avangrid Announces Termination Of The Merger Agreement With PNM Resources Due To Non-receipt Of All Final Regulatory Approvals By December 31, 2023
Portfolio Pulse from Benzinga Newsdesk
Avangrid (AGR) has terminated its merger agreement with PNM Resources due to the failure to receive all final regulatory approvals by the deadline of December 31, 2023. The merger, initially aimed to bring benefits to PNM consumers and aid New Mexico's clean energy goals, was hindered by the New Mexico Public Regulation Commission's denial. With the termination, a commitment letter from Iberdrola for funding the merger also ended. Avangrid reaffirms its 2023 EPS and Adjusted EPS guidance, excluding the impact of Renewables transactions.
January 02, 2024 | 6:18 am
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Avangrid's termination of the merger with PNM Resources may lead to short-term stock volatility as the market absorbs the news. However, the reaffirmation of its 2023 EPS and Adjusted EPS guidance could provide some stability to investor sentiment.
The termination of the merger could be seen as a negative development, potentially causing short-term uncertainty and stock volatility for Avangrid. However, the company's quick reaffirmation of its financial guidance for 2023 may mitigate negative sentiment and suggest management confidence in the company's standalone prospects.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
PNM Resources may experience negative investor reaction due to the termination of the merger with Avangrid, which was expected to bring significant benefits to the company and its consumers.
The cancellation of the merger with Avangrid removes the anticipated benefits that were expected to accrue to PNM Resources and its stakeholders. This could lead to disappointment among investors and a potential short-term decline in PNM's stock price as the market adjusts to the news.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80