The country's largest power retailer, Genesis Energy, is set to also become the country's second-largest LPG retailer.
Photo: Supplied
It plans to buy Nova Energy - a subsidiary of the Todd Corporation - for $192 million.
The deal would be funded by existing debt facilities, but Genesis was also considering a bond offer.
Genesis - which has stakes in the electricity and gas markets - currently produces about a quarter of all LPG in the country.
Chief executive Marc England said it would take a bigger slice of the market.
"Genesis Energy will now become New Zealand's second-largest LPG retailer by number of customers, with our market share leaping from 3 percent to 19 percent," he said.
Nova has around 35,000 residential, commercial and industrial customers and 70 employees.
The deal was conditional on due diligence and some other conditions and was expected to be completed at the end of May.
It was expected to result in an additional $17 million in underlying earnings for Genesis next year before integration costs.
