Innogy Holdings is to acquire Yorkshire Power Group for £1.94bn (€3.1bn) in cash and assumed debt in a deal that will create the largest UK electricity supplier.

Innogy, the UK's third largest electricity producer, said it would pay around £508.6m in cash for a 94.75% shareholding. It will also assume £1.37bn of Yorkshire's debt and acquire £62m of the firm's working capital.