Spanish renewable energy giant Iberdrola said on Wednesday it is buying US utility PNM Resources for $4.3 billion (€3.62bn) in a friendly takeover.

PNM Resources is active in the US states of Texas and New Mexico and the deal values the company at $8.3 billion, Iberdrola said in a statement.

Separately, the company said its next profit fell 8.8 per cent to €836 million in the three months to September, reflecting the impact of coronavirus lockdowns in lower energy demand and an increase in unpaid bills.

The outcome, however, was above analyst forecasts compiled by Factset for a net profit of €804 million.

Sales dropped 4.8 per cent to €7.78 billion.

For the nine months to September, net profit rose 4.7 per cent from the same period in 2019 to €2.68 billion, reflecting gains from the sale of its stake in Siemens-Gamesa, a Spanish-German wind turbine manufacturer.

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