NextEra Energy and Hawaiian Electric Industries announce termination of Merger Agreement
News Release from NextEra and Hawaiian Electric
JUNO BEACH, Fla., and HONOLULU – July 18, 2016 – NextEra Energy, Inc. (NYSE: NEE) and Hawaiian Electric Industries, Inc. (NYSE: HE) (HEI) today announced the termination of their plans to merge, effective immediately. The decision was driven by the Hawaii Public Utilities Commission’s (PUC) order to dismiss the companies’ merger application.
“As a result of the PUC’s order, we have terminated our merger agreement,” said Jim Robo, chairman and chief executive officer, NextEra Energy. “We wish Hawaiian Electric the best as it serves the current and future energy needs of Hawaii, including helping the state meet its goal of 100 percent renewable energy by 2045. Looking forward, NextEra Energy remains extremely well-positioned to execute on our strategy and deliver exceptional results for our customers and shareholders.”
“We appreciate NextEra Energy’s interest in Hawaii and in our company,” said Connie Lau, HEI’s president and chief executive officer and chairman of the boards of Hawaiian Electric and American Savings Bank. “All of us at HEI, Hawaiian Electric and American Savings Bank remain committed to serving our customers, and we look forward to working together with communities across our state to realize the clean energy future we all want for Hawaii and to ensure a vibrant local economy.”
Under the terms of the merger agreement, NextEra Energy will pay Hawaiian Electric Industries a $90 million break-up fee and up to $5 million for reimbursement of expenses associated with the transaction.
SA: In early trading on Wall Street this morning, HEI’s stock was at $30.61, down $1.87, or about 6 percent.