NextEra Energy has announced that it will acquire Dominion Energy through an all-stock deal worth $66.8 billion that will create the largest regulated electric utility in the world.
As part of the agreement, NextEra shareholders will own 74.5% of the combined company, while Dominion investors will hold 25.5%.
Dominion’s market value exceeds $50 billion, whereas NextEra’s exceeds $190 billion.
They will operate under NextEra’s name and be traded on the New York Stock Exchange using its ticker symbol.
John Ketchum, Chairman, President and CEO of NextEra Energy, told investors: “This is a historic moment for our two companies and for the states we are privileged to serve. Electricity demand is rising faster than it has in decades. Projects are getting larger and more complex. Customers need affordable and reliable power now, not years from now. We are bringing NextEra Energy and Dominion Energy together because scale matters more than ever— not for the sake of size, but because scale translates into capital and operating efficiencies. It enables us to buy, build, finance and operate more efficiently, which translates into more affordable electricity for our customers in the long run.
“By uniting two industry leaders with 238 years of collective experience, this combination creates a stronger company for customers and a stronger long-term value proposition for shareholders. Customers will benefit from $2.25 billion in bill credits and over time from the scale, operating and capital efficiencies this combination unlocks. They will also benefit from the shared expertise and best practices of America’s leading regulated utilities, laser-focused on low customer bills, customer service, storm resiliency and reliability, making the customer experience seamless in the near term and best in class over time. Shareholders will benefit from a broader regulated growth runway, a larger opportunity set and a more diversified platform. This is a unique situation where we believe one plus one equals three. We are confident that our customers, the communities we serve, our shareholders and our industry-leading teams will all benefit from this combination.”
Robert Blue, President and CEO of Dominion Energy, commented: “Dominion Energy and NextEra Energy share a deep commitment to delivering reliable and affordable energy and to the customers and communities we are honored to serve. This combination brings together two strong operating platforms and creates an even stronger energy partner for Virginia, North Carolina, South Carolina and Florida, with the scale and balance sheet to deliver the generation, transmission and grid investments our customers and economies need.
“We are excited to bring these great companies together and to write the next chapter in every community we serve.”
Ketchum will remain as CEO of the combined company, while Dominion CEO Robert Blue will serve as CEO of its regulated utilities division and join the board.
Shares of Dominion surged more than 15% in pre-market trading following the announcement.
By CEO NA Editorial Staff
