NextEra, Hawaiian Electric Terminate Merger Bid
July 18 2016 - 7:30AM
Dow Jones News
NextEra Energy Inc. ended its $4.3 billion bid to buy Hawaiian
Electric Co., the companies said Monday, citing Hawaiian officials'
rejection of the utility tie-up.
Per the merger agreement, NextEra Energy will pay HECO, the
state's biggest corporation, a $90 million breakup fee and up to $5
million for reimbursement of associated expenses.
Last Friday, Hawaii's Public Utilities Commission issued a
decision that said NextEra failed to prove its plans for HECO would
be good for the state. The regulator highlighted concerns about the
risks and benefits to utility customers and Next Era's clean-energy
commitments.
Hawaii generates most of its electricity by burning oil, and has
set a target of switching to 100% renewable power by 2045 while
also converting more cars to run on electricity.
The state ranks 49th out of the 50 in energy consumption per
capita, but its residents pay more per kilowatt-hour for
electricity than other Americans. The state depends heavily on
imported oil to meet its energy needs for power and
transportation.
Shares of both companies were inactive premarket.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
July 18, 2016 07:15 ET (11:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Hawaiian Electric Indust... (NYSE:HE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hawaiian Electric Indust... (NYSE:HE)
Historical Stock Chart
From Apr 2023 to Apr 2024