Iberdrola has announced the acquisition of PNM Resources in the US, in a deal worth $8.3 billion (£6.3bn), through its subsidiary Avangrid.
It says the integration into Avangrid will create one of the largest companies in the US utility industry, with 10 regulated electricity firms in six states, as well as the third-largest renewable energy operator in the US, with a total presence in 24 states.
The combined company will have assets worth more than $40 billion (£30.5bn) and a net profit of $850 million (£647m).
The combination of Avangrid and PNM will manage more than 4.1 million supply points, a regulated asset base of $14.4 billion (£10.9bn), more than 168,000km of networks and around 10.9GW of installed capacity.
Ignacio Galán, Chairman & CEO of Iberdrola and Chairman of Avangrid said: “The operation aligns to the strategy we have followed for more than 20 years. Friendly transactions, focused on regulated businesses and renewable energy, in countries with good credit ratings and legal and regulatory stability, offering opportunities for future growth.”