AltaGas and WGL Holdings to combine
T
he proposed merger between AltaGas and WGL Holdings will bring more scale and diversity to the companies’ energy service offerings throughout North America.
Valued at $6.4 billion, the merger unites AltaGas, a leading North American energy infrastructure company, with WGL Holdings, an energy provider and parent of Washington Gas, and together will serve 1.65 million utility customers across the United States and Canada.
AltaGas announced its plans to acquire the Washington, D.C.-based natural gas and diverse energy company in January. Together, they will offer a robust, complementary set of energy businesses, offer job growth opportunities and continue to serve customers and communities with safe, reliable and affordable services.
“The strategic fit and compatibility of our two companies is exceptional. Both companies are strong utility operators, have a sweet spot of pipeline and midstream investments in premier supply basins, and have power generation businesses weighted to clean energy and innovations,” said David Harris, president and CEO of AltaGas.
The combined company is expected to have pro forma enterprise value of approximately $17 billion and approximately $3.4 billion in natural gas rate base assets. In addition to natural gas, together the companies will offer electricity, renewable energy, distributed generation, energy efficiency, and natural gas storage and transportation.
Terry McCallister, chairman and CEO of WGL and past chairman of the American Gas Association, said, “We are proud of our company and are enthusiastic about the combination. Our focus at WGL has been creating value for our shareholders while at the same time providing superior service to our customers and to the communities we serve.”
The approval of the merger will fall to the company’s shareholders, regulatory commissions in D.C., Maryland and Virginia, and other regulatory bodies.
Washington Gas will retain its name and will operate as a business unit of AltaGas, assisting with the management of its U.S. regulated utility business. The transaction is expected to close in the first half of 2018.
