MADRID—Spain's Gamesa Corporació n Tecnoló gica SA said on Friday it had agreed in principle to combine its wind turbine business with that of the German engineering group Siemens AG, creating the world's biggest builder of wind farms.

Gamesa has given "the necessary corporate approval" for the merger, the Spanish company said in a statement sent to Spain's stock market regulator, adding that final terms must still be worked out.

The regulator then suspended trade in Gamesa shares, which had closed Thursday at €17.10 ($19.23) after rising 0.8% on the day.

Gamesa's announcement followed months of negotiations between the companies, and confirms an earlier report from The Wall Street Journal on Wednesday.

Write to Carlo Lopez-Perea at carlos.perea@wsj.com

(END) Dow Jones Newswires

June 17, 2016 05:25 ET (09:25 GMT)

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