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.