(MENAFN- ProactiveInvestors - UK) Power producerDominion Resources (NYSE:D)said it is to buy natural gas distributorQuestar (NYSE:STR)for about US$4.4bn.
The firm said it is an all-cash deal to expand its natural gas operations with the US$25-per-share offer representing a premium of nearly 23% to Questar's close price on Friday.
The combined company will serve about 2.5mln electric utility customers and 2.3mln gas utility customers in seven states.
It will also operate more than 15500 miles of natural gas transmission gathering and storage pipelines and about 24300 megawatts of power generation.
There has been a spate of deals between utilities and natural gas distributors caused by weakening power demand due to increased energy efficiency.
At the end of last year NYSE:DUK/Duke-Energy/" rel="6158">Duke Energy (NYSE:DUK) the largest U.S. power company announced a US$4.9bn deal forPiedmont Natural Gas (NYSE:PNY) whileSouthern (NYSE:SO) agreed to buyAGL Resources (NYSE:GAS)for about US$8bn.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.