US clean energy firm NextEra Energy has signed a definitive agreement to acquire Hawaiian Electric Industries (HEI) for approximately $4.3bn.
The deal includes $1.7bn of HEI debt and excludes HEI’s banking subsidiary.
In addition to the transaction, HEI has separately announced it is selling its subsidiary ASB Hawaii, which is also the parent company for American Savings Bank (ASB), to HEI shareholders.
ASB Hawaii will be established as an independent publicly traded company.
NextEra Energy chairman and chief executive officer Jim Robo said: "Today’s announcement marks an important milestone for both our companies as we seek to leverage our respective strengths, commitments to our customers and the communities we serve and the mutual goal of building a cleaner energy future.
"We believe our strengths are additive to Hawaiian Electric’s, creating an opportunity to enhance value for Hawaii’s strategically important energy industry.
"We look forward to welcoming and working with the Hawaiian Electric team, as well as engaging with and listening to key stakeholders, including Hawaiian Electric’s customers and communities, to achieve a more affordable clean energy future."
HEI president, chief executive officer and chairman of the board for American Savings and Hawaiian Electric Connie Lau said: "In NextEra Energy, Hawaiian Electric is gaining a trusted partner that can help the company accelerate its plans to achieve the clean energy future we all want for Hawaii.
"While our goals are among the most ambitious in the nation, including increasing renewables to 65%, tripling solar and lowering customer bills 20% by 2030, we are confident that by leveraging both NextEra Energy and Hawaiian Electric’s expertise and the additional financial resources that NextEra Energy brings, we can meet these targets even sooner."