An $8.3bn flagship acquisition designed to boost the US footprint of global green power giant Iberdrola hit the rocks after regulators in the state of New Mexico rejected its bid to buy utility PNM Resources.

Commissioners on the New Mexico Public Regulation Commission (NMPRC) voted 5-0 against approval of the deal for PNM Resources by Iberdrola-controlled US utility Avangrid.

The acquisition – which the two parties agreed in October 2020 – would have added more than 500,000 customers and 3GW of generation across Texas and New Mexico to Avangrid’s operations, with the combined business becoming the third-largest US renewable energy operator, Iberdrola said at the time.