NextEra, Hawaiian Electric still working on proposed merger

NextEra Energy (NYSE:NEE) and Hawaiian Electric Industries (NYSE:HE) (HEI) evidently haven’t given up on their proposed merger, despite the passing of a target deadline.

The two companies released a joint statement on June 4 saying that the merger quest continues although no order has been issued yet by the Hawaii Public Utilities Commission.

“Under its terms, the merger agreement between HEI and NextEra Energy does not automatically terminate on June 3,” the companies said in their statement. “Action on the part of one of the parties is required to terminate the merger after that date. That said, as of today, neither party has terminated the deal, despite the fact that June 3 has come and gone without a decision by the Hawaii Public Utilities Commission.”

Even prior to the statement, some analysts have said they are less confident that the merger will be consummated, citing significant political opposition in Hawaii.

The two companies had announced in December 2014 that they intended to combine. The transaction, valued at approximately $4.3bn, includes the assumption of $1.7bn in HEI debt and excludes HEI’s banking subsidiary.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.