Dive Brief:
- Discussions regarding NextEra Energy's plan to acquire Hawaiian Electric Industries began more than six months before the deal was publicly announced, with an initial proposal made in May 2014.
- The offer was given to HEI board members in June 2014, according to Pacific Business News, and eventually led to NextEra's initial offer being raised.
- The deal was announced in December, and values HECO at $4.3 billion. The utility recently assured regulators there was no connection between the merger and NextEra Resource's planned 15-MW solar farm on Oahu.
Dive Insight:
Documents filed with Hawaii regulators give greater insight into the proposed NextEra-HECO merger, with Pacific Business News reporting that NextEra CEO Jim Robo began talks with HEI CEO Connie Lau in May of last year. Robo believed NextEra's renewable energy experience and access to capital could be a benefit to HECO.
An overview of the proposal was first delivered to HECO board members over the summer.
Ultimately, the utility's goals include increasing renewables to 65%, tripling solar and lowering customer bills 20% by 2030. And NextEra has said it shares HECO's utility vision, including integrating more rooftop solar energy. "NextEra Energy is supportive of Hawaiian Electric’s plans to accomplish these goals," the company said in a press release at the time of the merger.
The merger requires approval by Hawaii utility regulators and is also is subject to approval by Hawaiian Electric shareholders, FERC, and the expiration or termination of the waiting period under the Hart-Scott-Rodino Act. The companies anticipate the transaction, which has been unanimously approved by both companies’ boards of directors, to be completed within approximately a year.
