Canadian pipeline operator Enbridge Inc. announced Tuesday that it plans to acquire three gas distribution companies from Dominion Energy.
The deal is valued at $14 billion, including $9.4 billion in cash and $4.6 billion in debt, and will create North America’s largest natural gas utility platform, according to Enbridge.
Dominion, headquartered in Richmond, Virginia, is one of the largest producers and transporters of energy in the nation. Based in Calgary, Canada, Enbridge owns and operates pipelines in Canada and the United States.
Enbridge will buy three of Dominion’s gas utilities: The East Ohio Gas Company, Public Service Company of North Carolina, Incorporated, and Questar Gas Company, which serve about 3 million homes and businesses.
“Adding natural gas utilities of this scale and quality, at a historically attractive multiple, is a once in a generation opportunity,” Enbridge CEO Greg Ebel said in a statement.
Dominion said the decision to sell three of its utilities comes amid an ongoing business review at the company aimed to “create maximum long-term value for shareholders.” Dominion’s stock is down more than 40% since last September.
The deal comes less than two months after Dominion sold a stake in another of its subsidiaries to Warren Buffett’s Berkshire Hathaway Energy for $3.3 billion.
“These businesses and employees have been an integral part of the Dominion Energy team, which is why we approached this decision with careful and deliberate consideration,” Dominion Energy CEO Robert Blue said in a statement about the company’s agreement with Enbridge.
The deal is expected to close by the end of 2024, and Enbridge has agreed to honor existing union agreements with Dominion employees.