NextEra, Hawaiian Electric Terminate Merger Bid

NextEra Energy Inc. ended its $4.3 billion bid to buy Hawaiian Electric Co., the companies said Monday, citing Hawaiian officials' rejection of the utility tie-up.

Per the merger agreement, NextEra Energy will pay HECO, the state's biggest corporation, a $90 million breakup fee and up to $5 million for reimbursement of associated expenses.

Last Friday, Hawaii's Public Utilities Commission issued a decision that said NextEra failed to prove its plans for HECO would be good for the state. The regulator highlighted concerns about the risks and benefits to utility customers and Next Era's clean-energy commitments.

Hawaii generates most of its electricity by burning oil, and has set a target of switching to 100% renewable power by 2045 while also converting more cars to run on electricity.

The state ranks 49th out of the 50 in energy consumption per capita, but its residents pay more per kilowatt-hour for electricity than other Americans. The state depends heavily on imported oil to meet its energy needs for power and transportation.

Shares of both companies were inactive premarket.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

July 18, 2016 07:15 ET (11:15 GMT)

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