Enbridge, the energy transportation company, has recently announced its agreement to purchase three major U.S. utilities from Dominion Energy for an impressive $14 billion. This strategic move will not only facilitate Enbridge’s expansion but also establish it as the largest natural gas utility franchise in North America.
Dominion Energy’s decision to sell these utilities is a part of its ongoing business review. With this deal, Enbridge will acquire the East Ohio Gas Company, Public Service Company of North Carolina, and Questar Gas, along with its associated Wexpro companies.
The purchase price of $14 billion includes a $9.4 billion cash consideration and $4.6 billion of assumed debt. Enbridge has successfully secured debt financing commitments amounting to $9.4 billion from esteemed financial institutions like Morgan Stanley and Royal Bank of Canada for the cash consideration component of these acquisitions.
To meet the financial requirements of this transaction, Enbridge has also conducted a bought-deal offering of common shares. This offering, which raised an impressive CAD $4 billion ($2.93 billion USD), is expected to fully cover the company’s planned discrete common equity issuance needs.