Avangrid, Inc. (NYSE:AGR) entered into an agreement to acquire PNM Resources, Inc. (NYSE:PNM) for $4 billion on October 20, 2020. Under the terms of the agreement, PNM Resources shareholders will receive $50.30 in cash for each share of PNM Resources common stock. Avangrid's majority shareholder, Iberdrola, has provided the company with a funding commitment letter for the entire equity proceeds for the transaction. PNM Resources will operate as wholly owned subsidiary of Avangrid. In event of termination of transaction by PNM Resources, it will be required to pay a termination fee of $130 million. In event the transaction is terminated by Avangrid, it will be required to pay a termination fee of $184 million. Dennis V. Arriola, Avangrid?s Chief Executive Officer will continue as Chief Executive Officer of the combined company. Pat Vincent-Collawn will step down as Chairman, President and Chief Executive Officer upon closing of the transaction. Don Tarry, current Chief Financial Officer of PNM Resources, will oversee the continuing operations of Public Service Company of New Mexico and Texas-New Mexico Power Company. Two directors from the current PNM Resources Board will serve as independent directors of Avangrid. One director from the current PNM Resources Board will also serve on the Board of the Avangrid Networks business. PNM Resources operations will continue to be overseen locally and the current headquarters of the utilities in New Mexico and Texas will remain. On May 18, 2021, PNM Resources entered into a $1 billion delayed-draw term loan agreement with lenders and will assign to Avangrid all of its rights, duties, obligations and liabilities pursuant to the consummation of the transaction.

The transaction is subject to approval by PNM Resources shareholders. In addition, the transaction will require approval from a number of state and federal regulators including the New Mexico Public Regulation Commission, Public Utility Commission of Texas, Federal Energy Regulatory Commission, Hart Scott Rodino Clearance, Committee on Foreign Investment in the United States, Federal Communications Commission and the Nuclear Regulatory Commission. The transaction is also subject to certain customary closing conditions. As on December 24, 2020, the transaction is contingent upon PNM Resources having a plan in place to exit Four Corners Power Plant. The deal is also conditional upon holders of no more than 15% of the outstanding shares of PNM Resources common stock validly exercising their dissenters? rights. The transaction was unanimously approved by the Board of Directors of both PNM Resources and Avangrid. As of November 24, 2020, PNM Resources has submitted a regulatory filing for merger transaction approval with filings at the New Mexico Public Regulation Commission and the Public Utility Commission of Texas (NMPRC). The proposed business combination transaction between PNM Resources and Avangrid will be submitted to the shareholders of PNM Resources for their consideration. On January 27, 2021, Avangrid confirmed that the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act") has expired which was cleared on January 20, 2021. As of February 1, 2021, the transaction has received clearance from the Committee on Foreign Investment in the United States (CFIUS). As of February 12, 2021, PNM Resources shareholders approve the transaction. As of March 10, 2021, Avangrid received the approval of the transfer of operating licenses from the Federal Communications Commission (FCC) related to the transaction. As on March 30, 2021, Avangrid, Texas-New Mexico Power Company (PNM Resources Texas utility subsidiary) reached a unanimous settlement with the Staff of the Public Utility Commission of Texas (PUCT) and the intervenors in the proceeding for the approval of the proposed merger. The PUCT is expected to consider the unanimous settlement soon. As of April 20, 2021, Federal Energy Regulatory Commission approved the transaction. On May 13, 2021, PUCT voted to approve the unanimous stipulation and agreement. In addition, the merger requires approval from the Nuclear Regulatory Commission (NCR). On May 25, 2021, M-S-R Power and Los Alamos County requested the Hearing Examiner to allow the parties to join the other 11 signatories supporting the agreement, under the condition that agreed-upon language to support the decommissioning of the San Juan Generating Station is added to the agreement. On May 25, 2021, NCR approved the transaction and the only remaining approval is from NMPRC. PRC hearing examiner Ashley Schannauer has scheduled two weeks of hearings with 24 organizations intervening in the case to run from August 11, 2021 - August 20, 2021 preceded by one day of open public comments set for August 9, 2021. So far, 13 parties have signed onto a settlement agreement that outlines 56 specific commitments Avangrid has accepted in exchange for support of the merger. But three key opponents are now proposing a series of amendments and additions to the settlement agreement that, if accepted by Avangrid, could potentially win their support for the merger. That includes Bernalillo County, the Albuquerque Bernalillo County Water Utility Authority and the New Mexico Affordable Reliable Energy Alliance, or NM AREA, which represents large industrial and institutional electric consumers. Those parties submitted written testimonies to the PRC on July 16, 2021. As of November 1, 2021, The Public Regulation Commission examiner recommended that the PRC commissioners reject the deal. As of November 7, 2021, Public Regulation Commission's five elected members will likely vote in early December in an open public hearing. As of November 12, 2021, PNM Resources and Avangrid say they will accept all conditions recommended by a Public Regulation Commission hearing examiner if the five-member commission decides to approve their proposed merger. As on December 8, 2021, New Mexico Public Regulation Commission rejected the agreement. As on January 3, 2022, the companies have filed a Notice of Appeal with the New Mexico Supreme Court of the December 2021 New Mexico Public Regulation Commission order to reject a stipulated agreement reached with parties in the companies? application for approval of the merger. On May 15, 2023, the New Mexico Supreme Court issued an order denying a joint motion filed by PNM Resources, Inc., Public Service Company of New Mexico, Avangrid, Inc., Iberdrola, S.A. and the New Mexico Public Regulation Commission (?NMPRC?) to dismiss the appeal of the NMPRC?s denial of a proposed merger and remand the case back to the NMPRC. The Court retains jurisdiction over the case and has set oral argument for September 12, 2023. The transaction is expected to close in fourth quarter of 2021. As on December 4, 2020, the transaction is expected to close in second half of 2021. On January 3, 2022, PNM Resources, Inc. and Avangrid, Inc. have entered into an amendment of their merger agreement extending the end date to April 20, 2023. As of April 12, 2023, the required regulatory approval from the New Mexico Public Regulation Commission has not been obtained and the Parties have reasonably determined that such outstanding approval will not be obtained by April 20, 2023, and accordingly PNMR and Avangrid each agreed to extend the end date to July 20, 2023.

Evercore served as exclusive financial advisor and R. Mason Bayler, David Carter, Coburn Beck, David Meyers, Heather Ducat, Jeffrey Banish, Robert Friedman, Jeffrey Gill, Ted Fauls, Amie Colby, Bob Edwards and Brian Harms of Troutman Pepper served as legal advisers to PNM Resources. BNP Paribas served as exclusive financial advisor to Avangrid. Eyal Orgad, David Schwartz, Les Carnegie, David Kurzweil of Latham & Watkins served as legal advisor to Avangrid and Iberdrola, S.A., associate parent.

Avangrid, Inc. (NYSE:AGR) cancelled the acquisition of PNM Resources, Inc. (NYSE:PNM) on January 2, 2024. As of January 2, 2024, PNM Resources Board of Directors approved an extension, it was not accepted by Avangrid and Avangrid terminated the merger.