GDF Suez has agreed to acquire FirstLight Power Enterprises in a $1.4 billion (£785.7 million) deal. The French utility giant hopes to strengthen its existing North American presence at a time when the European utility market is experiencing a record level of consolidation.

Global M&A in the utility sector has reached $187 billion (£105 billion) so far this year. That represents a nine per cent drop from last year, but is still the second highest level of activity for the first eight months of a calendar year ever, according to data from Thomson Reuters.

Consolidation amongst European utility companies buying each other, accounts for more than 60 per cent of all acquisitions in the sector and stands at a record $116 billion (£65 billion) for the year to date. Activity is up 28 per cent from the same period last year.

The largest European utility deals so far this year include the £20.2 billion acquisition of Union Fenosa by Gas Natural and the £8 billion acquisition of Endesa Italia by E.ON.

Meanwhile, EDF’s possible acquisition of British Energy worth in excess of £7.3 billion could further boost the M&A consolidation trend.

Eight of the ten largest utility companies by capitalsation are located in Europe.