NextEra Energy (NYSE: $NEE) has agreed to acquire Dominion Energy (NYSE: $D) in an all-stock deal valued at $67 billion U.S.
The transaction, once successfully closed, will create the world’s largest regulated electric utility business.
The combined companies, which will operate under the NextEra name, will serve 10 million utility customers in Florida, Virginia, North Carolina and South Carolina.
Dominion shareholders will receive 0.8138 shares of NextEra stock for each share of Dominion they currently own.
They will also continue to get Dominion’s quarterly dividend along with a one-time cash payment totaling $360 million U.S.
Dominion Energy’s stock is up 15% on May 18 after news broke of its acquisition.
The agreement creates a utility with an eclectic energy mix and comes with power demand and energy prices near all-time highs.
Each company operates a mix of renewable energy sources, including nuclear and natural gas-fired facilities.
NextEra is also in the process of developing 30 data center hubs to power warehouses in the U.S., a strategy that has sent its stock to record highs.
The agreement with Dominion is expected to close in the next 12 to 18 months, pending regulatory approval.
NextEra and Dominion shareholders will own 75% and 25% of the combined company, respectively.
NEE stock has risen 26% in the last 12 months to trade at $93.36 U.S. per share.
