NextEra Energy and Dominion announce merger to form utility giant
18 maj, 14:12
(Alliance News) - NextEra Energy Inc and Dominion Energy Inc on Monday said they have agreed to combine in an all-stock deal that will create the world's largest regulated electric utility business by market capitalisation.
Under the terms of the agreement, Dominion shareholders will receive 0.8138 shares of NextEra for each Dominion share held, resulting in NextEra and Dominion shareholders owning around 74.5% and 25.5% of the combined company, respectively.
Shares in NextEra were down 1.6% at USD91.84 in New York during premarket trading on Monday, while Dominion Energy shares shot up 15% to USD70.99 each.
The companies said the combined group will operate under the NextEra Energy name and continue trading on the New York Stock Exchange under the ticker "NEE".
The combined business will serve around 10 million customer accounts across Florida, Virginia, North Carolina and South Carolina and own 110 gigawatts of generation capacity across multiple energy sources.
The companies said the enlarged group will be more than 80% regulated and supported by what they described as the industry's "most diversified growth platform", targeting more than 9% annual adjusted earnings per share growth through 2032.
As part of the transaction, the companies proposed USD2.25 billion in bill credits over two years after closing for Dominion customers in Virginia, North Carolina and South Carolina.
The combined company also expects annual growth of around 11% in regulatory capital employed through 2032, supported by a combined rate base of USD138 billion.
NextEra Chair & Chief Executive Officer John Ketchum said rising electricity demand and increasingly complex infrastructure projects made scale more important than ever.
"Scale translates into capital and operating efficiencies. It enables us to buy, build, finance and operate more efficiently, which translates into more affordable electricity for our customers in the long run," Ketchum said.
Dominion Chair, President & CEO Robert Blue said the deal would create "an even stronger energy partner" for the four states served by the combined business.
The companies said the transaction is expected to be immediately accretive to adjusted earnings per share at closing and tax-free to shareholders.
Dominion shareholders will continue receiving Dominion's quarterly dividend until completion and will also receive a one-time USD360 million cash payment at closing.
The combined company intends to maintain dual headquarters in Juno Beach, Florida, and Richmond, Virginia, while Dominion Energy South Carolina's operational headquarters will remain in Cayce, South Carolina.
Ketchum will serve as chair & CEO of the combined company, while Blue will become president & CEO of regulated utilities and join the board.
The board will comprise 10 directors from NextEra and four from Dominion.
The transaction has been unanimously approved by both boards and is expected to close within 12 to 18 months, subject to shareholder, regulatory and antitrust approvals.
By Eva Castanedo, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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NextEra Energy and Dominion announce merger to form utility giant
18 maj, 14:12
(Alliance News) - NextEra Energy Inc and Dominion Energy Inc on Monday said they have agreed to combine in an all-stock deal that will create the world's largest regulated electric utility business by market capitalisation.
Under the terms of the agreement, Dominion shareholders will receive 0.8138 shares of NextEra for each Dominion share held, resulting in NextEra and Dominion shareholders owning around 74.5% and 25.5% of the combined company, respectively.
Shares in NextEra were down 1.6% at USD91.84 in New York during premarket trading on Monday, while Dominion Energy shares shot up 15% to USD70.99 each.
The companies said the combined group will operate under the NextEra Energy name and continue trading on the New York Stock Exchange under the ticker "NEE".
The combined business will serve around 10 million customer accounts across Florida, Virginia, North Carolina and South Carolina and own 110 gigawatts of generation capacity across multiple energy sources.
The companies said the enlarged group will be more than 80% regulated and supported by what they described as the industry's "most diversified growth platform", targeting more than 9% annual adjusted earnings per share growth through 2032.
As part of the transaction, the companies proposed USD2.25 billion in bill credits over two years after closing for Dominion customers in Virginia, North Carolina and South Carolina.
The combined company also expects annual growth of around 11% in regulatory capital employed through 2032, supported by a combined rate base of USD138 billion.
NextEra Chair & Chief Executive Officer John Ketchum said rising electricity demand and increasingly complex infrastructure projects made scale more important than ever.
"Scale translates into capital and operating efficiencies. It enables us to buy, build, finance and operate more efficiently, which translates into more affordable electricity for our customers in the long run," Ketchum said.
Dominion Chair, President & CEO Robert Blue said the deal would create "an even stronger energy partner" for the four states served by the combined business.
The companies said the transaction is expected to be immediately accretive to adjusted earnings per share at closing and tax-free to shareholders.
Dominion shareholders will continue receiving Dominion's quarterly dividend until completion and will also receive a one-time USD360 million cash payment at closing.
The combined company intends to maintain dual headquarters in Juno Beach, Florida, and Richmond, Virginia, while Dominion Energy South Carolina's operational headquarters will remain in Cayce, South Carolina.
Ketchum will serve as chair & CEO of the combined company, while Blue will become president & CEO of regulated utilities and join the board.
The board will comprise 10 directors from NextEra and four from Dominion.
The transaction has been unanimously approved by both boards and is expected to close within 12 to 18 months, subject to shareholder, regulatory and antitrust approvals.
By Eva Castanedo, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
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