PNM’s stock drops in premarket after Iberdrola’s Avangrid terminates $4.3B merger

PNM Resources Inc.’s stock
PNM,
-1.86%
was down by 7.8% in premarket trading on Tuesday after Avangrid Inc.
AGR,
-2.83%
said it would not complete a 2020 deal to buy PNM for $4.2 billion. Avangrid, which is majority-owned by Spain’s Iberdrola SA
IBE,
-1.00%,
said it was unable to obtain all final regulatory approvals by Dec. 31 and so it terminated the deal. The New Mexico Supreme Court had not yet completed its review of a January, 2022 appeal of the New Mexico Public Regulation Commission decision denying the transaction. PNM Resources said it’s “greatly disappointed” with Avangrid’s decision and reiterated its long-term earnings growth of 5%.