M-Production/iStock via Getty Images
Enbridge (NYSE:ENB) on Tuesday said it reached three deals with Dominion Energy (NYSE:D) to buy East Ohio Gas Co, Questar Gas and Public Service Company of North Carolina for a combined value of $14 billion. The agreements will create the biggest natural-gas utility in North America.
The terms include $9.4 billion of cash and $4.6 billion of assumed debt, Enbridge (ENB) said in a statement.
Enbridge’s stock (ENB) fell 7% in extended trading.
Enbridge (ENB) expects the deals to close next year, expanding the company’s gas utilities in Ohio, North Carolina, Utah, Idaho and Wyoming.
“Acquiring these natural gas utilities makes strong strategic and financial sense. Enbridge is currently the only major pipeline and midstream company that owns a regulated gas utility and we’ve further strengthened that position today by doubling the size of our GDS (gas distribution and storage) business,” Patrick Murray, CFO of Enbridge, said in a statement.
The agreement with Enbridge comes 10 months after Dominion Energy (D) said it would begin a thorough review of its business to improve results.
