Key facts
- NextEra Energy and Dominion Energy have agreed to combine in an all-stock transaction.
- The merger will create the world's largest regulated electric utility business.
- The combined company will serve approximately 10 million customers across Florida, Virginia, North Carolina, and South Carolina.
- Dominion Energy customers in Virginia, North Carolina, and South Carolina are proposed to receive $2.25 billion in bill credits over two years.
- Dominion Energy shareholders will receive 0.8138 shares of NextEra Energy for each share they own.
NextEra Energy, Inc. and Dominion Energy, Inc. have entered into a definitive agreement to combine in an all-stock transaction, aiming to create the world's largest regulated electric utility business. The companies have filed for approval from regulators in three states and a federal agency. The combined entity is expected to serve approximately 10 million customer accounts across Florida, Virginia, North Carolina, and South Carolina. Under the terms of the agreement, Dominion Energy shareholders will receive 0.8138 shares of NextEra Energy for each share of Dominion Energy they own. This structure would result in NextEra Energy shareholders owning approximately 74.5% of the combined company and Dominion Energy shareholders owning 25.5%. The merger is anticipated to leverage enhanced scale in operations, procurement, construction, and financing to meet increased electric demand more cost-effectively. Additionally, the combined company proposes $2.25 billion in bill credits spread over two years for Dominion Energy's customers in Virginia, North Carolina, and South Carolina. The transaction is structured as a 100% stock-for-stock deal and is expected to be tax-free to shareholders, while also being immediately accretive to adjusted earnings per share at closing. The combined company's operations will be more than 80% regulated, focusing on four of the fastest-growing states in the country, and is expected to support 11% annual growth in regulatory capital employed. The company anticipates driving 9%+ adjusted earnings per share growth expectations through 2032.