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Southern Company and AGL Resources Complete Merger

  • By Admin
  • July 7, 2016
  • 21 Views

According to numerous reports mergers and acquisitions, within the power sector, are occurring once again.  Accounting and consulting firm EY (formerly Ernst & Young) noted that in 2016 U.S. deal values have skyrocketed 255% compared with the same time frame in 2015.  The latest merger came just last week when Southern Company closed on its acquisition of natural gas distributor AGL Resources.

Under the terms of the agreement each share of AGL Resources common stock was canceled and converted into the right to receive $66.00 in cash, for a total purchase price of approximately $8 billion.  AGL Resources will continue to maintain its own management team, board of directors and corporate headquarters, located in Atlanta, GA.

“This merger brings together two utilities recognized for outstanding reliability, world-class customer service and a commitment to inventing America’s energy future,” said Southern Company Chairman, President and CEO Thomas A. Fanning. “The strategic combination of industry leaders with similar business models and values enhances our ability to serve customers and communities as we together deliver tomorrow’s energy solutions.”

This makes Southern Company the second-largest utility company in the U.S. in terms of customer base with:

  • Eleven regulated electric and natural gas distribution companies providing service to approximately 9 million customers with a projected regulated rate base of ~$50 billion.
  • Operations of nearly 200,000 miles of electric transmission and distribution lines and more than 80,000 miles of natural gas pipelines.
  • Generating capacity of approximately 44,000 megawatts.

The newly combined company serves utility customers in nine states — Alabama, Florida, Georgia, Illinois, Maryland, Mississippi, New Jersey, Tennessee and Virginia — and has wholesale electricity generation and natural gas services, retail energy services and natural gas storage operations across the U.S.

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