NextEra Energy on Monday announced it would acquire rival Dominion Energy in a deal valued at nearly $67 billion, combining two of the largest utility firms in the U.S., as electricity demand is expected to accelerate over the next decade while more companies pour funds into AI infrastructure.
A deal would combine two of the largest U.S. utility firms.
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NextEra will exchange about eight-tenths of a share of its stock for each outstanding share of Dominion in a deal that values NextEra’s rival at about $66.8 billion, both companies announced Monday.
NextEra is the world’s largest utility company by market value at $194.6 billion, and Dominion powers the world’s largest data center market in Virginia.
The deal, which the companies said is expected to close in the next 12 to 18 months and requires regulatory approval, would combine about 10 million utility customers across Florida, Virginia, North Carolina and South Carolina.
NextEra shareholders will hold 74.5% of the combined company that will trade under NextEra’s ticker on the New York Stock Exchange, while Dominion investors will hold 25.5%, as NextEra would receive an additional $360 million in cash.
Shares of NextEra dropped 3.6% at the open on Monday, while Dominion jumped nearly 11%.
Dominion’s four million customers in Virginia, North Carolina and South Carolina are expected to receive $2.25 billion in bill credits over two years after the deal’s close, the companies said, potentially bringing about $562 in total to each customer. It’s too soon to say whether the deal will lower electricity prices as it will likely face a “significant” amount of regulatory scrutiny, according to Evercore ISI analyst Nicholas Amicucci, who wrote that state bodies, the Federal Energy Regulatory Commission and the Justice Department will look at the deal’s terms and its viability for consumers.
$1.4 trillion. That’s how much U.S. utility firms plan on spending over the next five years as they race to meet rising electricity demand for AI products, according to the consumer education group PowerLines. That’s a 20% increase from the $1.1 trillion planned a year ago.
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