NextEra to Acquire Dominion in All-Stock Utility Mega-Merger
NextEra Energy has agreed to acquire Dominion Energy in an all-stock transaction that will create the world’s largest regulated electric utility business.
Dominion shareholders will receive 0.8138 shares of NextEra for each Dominion share they own at closing, leaving NextEra and Dominion investors with approximately 74.5% and 25.5% of the combined company, respectively. The combined business will be more than 80% regulated, serving about 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina, and will own roughly 110 gigawatts of generation across a diversified mix of energy sources.
As part of the combination, the companies are proposing $2.25 billion in bill credits for Dominion customers in Virginia, North Carolina and South Carolina, to be spread over the first two years after closing.
The merged entity will operate under the NextEra Energy name and keep the NEE ticker on the New York Stock Exchange. It will maintain a significant regional presence, with dual headquarters in Juno Beach, Florida, and Richmond, Virginia, and Dominion Energy South Carolina’s operational headquarters remaining in Cayce, South Carolina. Dominion’s utility subsidiaries will continue under their existing brands: Dominion Energy Virginia, Dominion Energy North Carolina and Dominion Energy South Carolina.
John Ketchum will serve as chairman and CEO of the combined company. Robert Blue will become president and CEO of regulated utilities and join the board, while Edward Baine will lead Dominion Energy Virginia, Keller Kissam will lead Dominion Energy South Carolina and Scott Bores will remain president and CEO of Florida Power & Light Company.
The deal is expected to be immediately accretive to adjusted earnings per share, with management targeting 9%+ adjusted EPS growth through 2032 and a 9%+ target through 2035 off NextEra’s 2025 base. Closing is anticipated within 12 to 18 months, subject to regulatory approvals.
Kirkland & Ellis LLP served as legal counsel, and Lazard acted as lead financial advisor, with BofA and Wells Fargo also serving as financial advisors, to NextEra Energy. McGuire Woods LLP served as legal counsel, and Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC acted as co-financial advisors, to Dominion Energy.