By Joshua Kirby
Iberdrola SA said Wednesday that its majority-owned subsidiary Avangrid Inc. has agreed to buy a 100% stake in New Mexico-based electricity company PNM Resources Inc. for around $4.32 billion.
Spanish energy company Iberdrola said it would fund the purchase of PNM Resources by energy-services subsidiary Avangrid, in which it holds an 81.5% stake.
Avangrid will pay $50.30 a share for PNM Resources, equivalent to around $4.32 billion.
PNM Resources' board of directors has unanimously approved the merger deal, Iberdrola said. The deal is dependent on approval by the U.S. company's shareholders, as well as other regulatory and other conditions. Avangrid expects the deal to be completed within 12 months.