Southern Company-AGL Resources Deal OK'd In New Jersey
Zacks Investment Research | Jun 29, 2016 09:16PM ET
Leading energy utility firm Southern Company (NYSE:SO) and Atlanta, GA-based energy services holding company, AGL Resources Inc. (NYSE:GAS) jointly announced that they have received the final approval from the regulators of New Jersey for their $12 billion proposed merger.
The transaction – likely to be completed on or around Jul 1 – will make Southern Company the second-largest U.S. utility in terms of customer base. The merger will combine 11 regulated electric and natural gas distributions. The integrated entity will serve about nine million customers and is expected to have an electricity generating capacity of about 44,000 MWs. Once merged, the companies would operate close to 200,000 miles of electric transmission and distribution lines and would also integrate more than 80,000 miles of gas pipelines.
In Aug 2015, Southern Company entered into an agreement to acquire AGL Resources. Per the original terms of the deal, the stockholders of AGL Resources will receive $66 per share. The company would become the third-largest operating subsidiary of Southern Company. Post acquisition, AGL Resources will continue working with its own management team.
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