NextEra Energy has signed a deal to acquire Virginia’s main utility company, Dominion Energy, to create the world’s largest regulated electric utility business.
– Sebastian Moss
The deal will create the world’s biggest regulated electric utility business, serving approximately 10 million utility customer accounts across Florida, Virginia, North Carolina, and South Carolina. Collectively, the firm will own 110GW of generation across a range of energy sources.
The all-stock deal will see Dominion Energy shareholders receive a fixed exchange ratio of 0.8138 shares of NextEra Energy for each share of Dominion Energy they own at the close of the transaction. As a result, NextEra and Dominion shareholders will own approximately 74.5 percent and 25.5 percent of the combined company, respectively. The combined company will operate under the NextEra Energy name.
“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,” said John Ketchum, chairman, president, and CEO of NextEra. “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.
