Renewable energy developer NextEra Energy and Hawaiian Electric Industries have cancelled plans to merge, following the Hawaii Public Utilities Commission’s (PUC’s) order to dismiss the merger application.
The Hawaii PUC said on Friday it had voted two to zero to reject the merger proposal on the grounds that the application was not in the public interest.
Under the terms of the merger agreement, NextEra Energy will pay Hawaiian Electric Industries a $90m break-up fee and up to $5m for reimbursement of expenses associated with the transaction.
Hawaiian Electric Industries said after taxes $60m of the break-up fee would help fund Hawaii’s clean energy transformation.
NextEra Energy chairman Jim Robo said: “As a result of the PUC’s order, we have terminated our merger agreement.
“Looking forward, NextEra Energy remains extremely well-positioned to execute on our strategy and deliver exceptional results for our customers and shareholders.”
Hawaiian Electric Industries president and chief executive officer Connie Lau said: “While the merger would have provided significant benefits for Hawaii, Hawaiian Electric Industries remains a strong company that is well-positioned to achieve our goals and provide long-term value for our customers, community, employees and shareholders.”
Image: Pixabay
NextEra cancels Hawaiian merger
$90m break-up fee will help fund clean energy on Pacific islands
By EBS