Southern Company has announced that it is to acquire AGL Resources through a US$12 billion transaction. Pursuant to the agreement, AGL Resources will become a new subsidiary of Southern Company.
The agreement will create the second largest utility company in the US by customer base, with 11 regulated electric and natural gas distribution companies, operations of nearly 200 000 miles of electric transmission and distribution lines, 80 000 miles of gas pipelines, and a generating capacity of approximately 46 000 MW.
Southern Company Chairman, President, and CEO, Thomas A. Fanning, said: “As America's leader in developing the full portfolio of energy resources, we believe the addition of AGL Resources to our business will better position Southern Company to play offense in supporting America's energy future through additional natural gas infrastructure. For some time we have expressed our desire to explore opportunities to participate in natural gas infrastructure development. With AGL Resources' experienced team operating premier natural gas utilities and their investments in several major infrastructure projects, this is a natural fit for both companies.”
Under the terms of the agreement, AGL Resources' shareholders will be entitled to receive US$66 in cash for each share of AGL Resources common stock.
Edited from press release by Angharad Lock
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25082015/southern-company-to-acquire-agl-resources-1194/