Iberdrola’s US unit, Avangrid Inc., has announced the termination of its $8.3 billion deal, including debt, with rival PNM Resources.

The decision was made due to the inability to obtain all necessary regulatory approvals by the December 31st deadline, according to a statement released by the US power utility.

The two power utility companies had obtained all necessary approvals except that of the New Mexico Public Regulation Commission, the statement said.

Meanwhile, the regulator had rejected Avangrid’s proposed acquisition of PNM Resources in 2021, saying the deal’s risks outweighed its promised benefits to state ratepayers.

Avangrid has stated that there is currently no clear timeline for the resolution of a court review for the denial or any subsequent regulatory actions. The company also reaffirmed its 2023 forecast for earnings per share (EPS) and adjusted EPS. PNM Resources, on the other hand, has announced that it will provide a financial update, including its preliminary results, in February.

The deal, which was worth $4.3 billion excluding debt, was unanimously approved by PNM’s board in 2020. It was expected to create a renewable energy operator with a combined market value of over $20 billion.

“While the PNM Resources Board of Directors approved an extension, it was not accepted by Avangrid, which terminated the merger,” PNM Resources said in a separate statement.