Spanish energy giant Iberdrola has confirmed that it has made a £11.6 billion takeover bid for UK utility Scottish Power, following weeks of speculation.
Scottish Power shareholders will receive 400 pence in cash and 0.1646 of new Iberdrola shares, for every Scottish Power share.
The bid which involves cash and shares would see Iberdrola become the third biggest energy supplier in Europe, behind Germany's E.ON and the French firm EDF.
Iberdrola has business operations in gas and electricity in 28 countries and is also one of the world's leading producers of wind energy.
Scottish Power is the UK's fifth largest energy provider and also has electricity generation and gas storage facilities in the UK and the US.
The merger will see Iberdrola gain access to the UK and US markets and the company has described the union as "strategically attractive" as well as making the combined group "the leading global renewable energy company".
Operational costs are also predicted to drop with annual pre-tax operating cost savings of at least £88 million.
There is no indication of any Scottish Power job losses as part of the merger, as current employees are to "continue to play a vital role in the business going forward".