Avangrid Inc. and PPL Corp. are considering merging all or parts of their businesses, the Financial Times reported Oct. 12, citing people close to the discussions.
A full merger, which could create a company worth more than $67 billion, would be the biggest deal in the utility space this 2019. The companies are still exploring options to structure the transaction and there is no certainty that they would reach a deal, according to the report.
Avangrid is majority owned by the Spanish utility Iberdrola SA, which may or may not invest in the potential deal. The utility has $32 billion in assets and operates in 24 U.S. states.
PPL serves more than 10 million customers in the U.S and in the U.K. Its business in the U.K., which accounted for about 29% of the company's revenues in 2018, could be a key hurdle in the deal due to political pressure in the country. But the source told the Financial Times that PPL may opt to spin off the U.K. unit to proceed with the deal.