Duke Energy (DUK) Completes $6.7 Billion Piedmont Buyout
Zacks Investment Research | Oct 03, 2016 09:50PM ET
Duke Energy Corporation (NYSE:DUK) has closed the acquisition of Piedmont Natural Gas Co. Inc. (NYSE:PNY) . The transaction, worth $6.7 billion, was announced in Oct 2015.
Details of the Transaction
The purchase consideration of the transaction was approximately $4.9 billion in cash and assumption of around $1.8 billion in Piedmont’s existing net debt, which translates to a total enterprise value of about $6.7 billion.
Last week, Duke Energy received the North Carolina Utilities Commission’s (“NCUC”) approval for the acquisition — the final regulatory approval required to close the transaction.
Post-Acquisition Scenario
Charlotte-based Piedmont will retain its name and its headquarters, but will operate as a wholly owned subsidiary of Duke Energy. With the completion of the transaction, Piedmont's 1 million natural gas customers will be added to Duke Energy's portfolio of 525,000 natural gas customers and 7.4 million electric customers.
Initially, the companies plan to keep the changes to a minimum, and are especially in support of retaining service phone numbers, billing options or service request procedures in order to lessen the impact of the change on customers.
However, internally, Duke Energy’s management will be working to incorporate Piedmont's corporate functions such as accounting, human resources and information technology with the company.
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