Richmond-based Dominion Energy, the leading provider of electricity in Hampton Roads, is set to be acquired by Florida-based NextEra Energy to create one of the largest energy infrastructure companies in the world.
“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,” Dominion Energy CEO Robert Blue said in a Monday news release.
The companies have entered an agreement for a stock transaction, resulting in NextEra owning about 74.5% and Dominion owning 25.5% of the combined company. Dominion shareholders also would receive a one-time cash payment of $360 million at closing. The deal, which the companies aim to complete in 12 to 18 months, is subject to approvals by shareholders and regulators.
Blue said the two companies share a deep commitment to delivering reliable and affordable energy.
The companies said the enhanced operating platform would benefit customers over time. Enhanced operation scale, procurement, construction and financing would all lead to cost effectively handling increased electric demand for its more than 10 million customers in Virginia, the Carolinas and Florida.
The companies, with a combined 238 years of experience, will maintain dual headquarters in Juno Beach, Florida, and Richmond along with operational headquarters in Cayce, South Carolina. The combined company will operate under the NextEra Energy name, and Blue would serve as its president and CEO of regulated utilities and as a member of its board of directors.
This is a developing story. Check back later for updates.
Sandra J. Pennecke, 757-652-5836, sandra.pennecke@pilotonline.com