UPDATE - NextEra, Hawaiian Electric Industries cancel USD-4.3bn tie-up
One of Hawaii's existing solar power plants. Author: Official US Navy Page. License: Creative Commons: Attribution 2.0 Generic
Florida-based NextEra Energy (NYSE:NEE) said on Monday it has terminated its deal to take over Hawaiian Electric Industries (NYSE:HE) and its units after the Hawaii Public Utilities Commission (PUC) banned the merger.
Regulators blocked the USD-4.3-billion (EUR 3.89bn) transaction because they believe it is not in the best interest of the state. Virtually every party in the PUC proceeding opposed NextEra's proposal, The Alliance for Solar Choice said in a statement earlier.
The transaction was opposed by a broad coalition of environmental, consumer and business parties because NextEra’s business model is incompatible with Hawaii’s goal of becoming 100% renewable by 2045.
“Looking forward, NextEra Energy remains extremely well-positioned to execute on our strategy and deliver exceptional results for our customers and shareholders,” commented Jim Robo, chairman and CEO of NextEra Energy.
As a result of the deal cancellation, NextEra will pay a break-up fee of USD 90 million along with up to USD 5 million for reimbursement of expenses associated with the transaction, it said.
Earlier, Pacific Business News (PBN) reported that a subsidiary of American business magnate Warren Buffett’s Berkshire Hathaway Energy Company may be keen on acquiring Honolulu-based utility Hawaiian Electric Co.