Enbridge Bets Big on US Gas With $9.4 Billion Dominion Deal

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Enbridge Bets Big on US Gas With $9.4 Billion Dominion Deal
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(Bloomberg) -- Canadian pipeline operator Enbridge Inc. agreed to buy three utilities from Dominion Energy Inc. in a $9.4 billion deal to create North America’s largest natural gas provider.Most Read from BloombergIndia’s Moment Has Arrived, and Modi Wants a New Global OrderChina Slowdown Means It May Never Overtake US Economy, Forecast ShowsHuawei Teardown Shows Chip Breakthrough in Blow to US SanctionsReturn-to-Office Is a $1.3 Trillion Problem Few Have Figured OutBillion-Dollar Corporate Bond

The acquisition of the East Ohio Gas Co., Questar Gas Co. and Public Service Co. of North Carolina will double the Calgary-based company’s gas utility business, Enbridge said in a statement Tuesday.

The move comes as Enbridge, North America’s largest pipeline company, is pushing to position itself for the transition toward cleaner energy. The three companies it’s buying serve customers in Ohio, Utah, Wyoming and North Carolina, where revenue from utility bills is forecast to grow faster than the national average.

Enbridge shares fell 6.2% as of 9:09 p.m. in after-hours trading in New York while Dominion was 0.3% lower. To help finance the transaction, Enbridge said separately that it plans to raise C$4 billion in a share sale underwritten by a group of institutions led by RBC Capital Markets and Morgan Stanley.

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