(Calgary) Enbridge announced Tuesday that it has signed a $14 billion cash and debt deal to buy three U.S.-based utility companies.
The Calgary energy infrastructure giant says the three utilities, owned by Dominion Energy, are The East Ohio Gas Company, Questar Gas Company and its associated Wexpro companies, and the Public Service Company of North Carolina.
Enbridge said it would fund the transaction with a combination of US$9.4 billion in cash consideration and US$4.6 billion in assumed debt.
The Canadian company calculates that the deal will double the size of its natural gas utility business and serve to balance its asset allocation evenly between natural gas, renewables and liquids.
Enbridge says following the transaction, its natural gas utility business will be the largest by volume in North America, with a combined rate base of more than C$27 billion and approximately 7,000 employees delivering more than nine billion cubic feet of natural gas per day to approximately seven million customers.
The agreement is subject to regulatory approval and is expected to be finalized in 2024.
