NextEra Energy and Dominion Energy, the developer of the biggest US offshore wind farm, have entered into a definitive agreement to combine in an all-stock transaction that would create what the companies describe as the world’s largest regulated electric utility business.

Under the agreement, Dominion Energy shareholders will receive 0.8138 shares of NextEra Energy for each Dominion share held. Following completion of the transaction, NextEra Energy shareholders are expected to own approximately 74.5 per cent of the combined company, with Dominion shareholders holding the remaining 25.5 per cent.