Southern Company, America’s third largest utility owner and natural-gas distributor AGL Resources announced a merger agreement on Monday with an enterprise value of $12 billion and a total equity value of $8 billion. The deal, which is expected to close in the latter half of 2016, would make Southern Co. the second largest electric and natural gas utility company in the U.S.
Southern Co. reports the transaction, which promises AGL shareholders a premium of $66 per share, would expand the utility giant’s based to approximately 9 million customers spanning 9 states, 11 electric and natural gas distribution companies and approximately $50 billion in regulated rate base. Furthermore, it would also bring a total of 200,000 miles of electric transmission and distribution lines and more than 80,000 miles of gas pipelines under operational control.
On a day that has brought devastation to many energy-related stocks, AGL is up 29% in midday trading.
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