NextEra Energy Inc. plans to buy Hawaiian Electric Industries Inc. to expand clean energy in Hawaii.
The companies value the deal at $2.6 billion, or $4.3 billion including debt.
NextEra is one of the country's largest electrical utilities and owns a major wind and solar energy company. Hawaiian Electric supplies power to 95 percent of Hawaii's population through its electric utilities.
The companies said Wednesday that Hawaiian Electric shareholders will receive a fractional share in NextEra Energy stock, plus a one-time cash dividend and shares in a related spinoff company as part of the deal. They estimate the value of these shares and payments at $33.50 per share of Hawaiian Electric stock.
Hawaiian Electric also plans to spin off its banking business as part of the deal.