The board of Iberdrola subsidiary Avangrid Inc. has approved the acquisition of New Mexico-based PNM Resources in an all-cash transaction valued at $8.3 billion.

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The merger would create “one of the largest companies in the U.S. utility industry with 10 regulated electricity companies in six states (New York, Connecticut, Maine, Massachusetts, New Mexico and Texas) and the third largest renewable energy operator in the United States with a total presence in 24 states,” said Bilbao, Spain-based Iberdrola.

PNM, headquartered in Albuquerque, provides electricity to about 790,000 homes and businesses in New Mexico and Texas. The firm’s 2,811 MW power generation fleet includes 989 MW of natural gas-fired capacity.

Avangrid, meanwhile, through its Avangrid Networks business...