NextEra Energy and Dominion Energy have entered into a definitive agreement to combine in an all-stock transaction. The merged company will be more than 80% regulated and is expected to serve around 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina. It will also own 110 GW of generation across a mix of energy sources.
The transaction is structured as a 100% stock-for-stock deal and is expected to be tax-free for shareholders. The combined company will operate under the NextEra Energy name and trade on the New York Stock Exchange under the ticker symbol NEE.
It will maintain a dual-headquarters structure in Juno Beach, Florida and Richmond, Virginia, with Dominion Energy South Carolina’s existing operational headquarters remaining in Cayce, South Carolina.
Leadership roles will be split across the combined organisation, with John Ketchum serving as chairman and chief executive officer, and Robert Blue serving as president and chief executive officer of regulated utilities. Dominion Energy’s utility businesses will continue to operate under their existing names across Virginia, North Carolina and South Carolina.
Under the terms of the agreement, Dominion Energy shareholders will receive 0.8138 NextEra Energy shares per Dominion Energy share, along with a one-time cash payment of $360 million distributed across all outstanding shares. The merger is expected to close in 12 to 18 months, subject to customary approvals.
The transaction has been unanimously approved by the boards of both companies.
