Southern Company and AGL Resources Complete Merger

7/3/16 Southern Company and AGL Resources announced the completion of a merger on July 3rd. "This merger brings together two utilities recognized for outstanding reliability, world-class customer service and a commitment to inventing America's energy future," said Southern Company Chairman, President and CEO Thomas A. Fanning. "The strategic combination of industry leaders with similar business models and values enhances our ability to serve customers and communities as we together deliver tomorrow's energy solutions."AGL Resources has become a wholly owned subsidiary of Southern Company, which now has 11 electric and natural gas utilities with operations across the U.S. The addition of AGL Resources' network of natural gas assets and businesses provides a broader, more robust platform for long-term success. "Southern Company is now positioned to deliver even greater customer and shareholder value by playing offense in developing the infrastructure necessary to meet America's growing demand for natural gas," said Fanning. Southern Company is now the second-largest utility company in the U.S. in terms of customer base with: Eleven regulated electric and natural gas distribution companies providing service to approximately 9 million customers with a projected regulated rate base of approximately $50 billion; Operations of nearly 200,000 miles of electric transmission and distribution lines and more than 80,000 miles of natural gas pipelines; andGenerating capacity of approximately 44,000 megawatts. The combined company serves utility customers in nine states – Alabama, Florida, Georgia, Illinois, Maryland, Mississippi, New Jersey, Tennessee and Virginia – and has wholesale electricity generation and natural gas services, retail energy services and natural gas storage operations across the U.S."AGL Resources is delighted to be a part of the Southern Company family," said AGL Resources President and CEO Andrew W. Evans. "Together, we will make our employees, our customers, our investors and our neighbors proud to be connected with us. Our collective determination to support and improve the communities where we do business will only be enhanced as we move forward together as one company. Clearly, this merger is a logical fit for both companies. "For customers, this combination is expected to help the Southern Company system better meet their energy needs over time by improving current and future energy infrastructure development. For communities, it provides for the expansion of the company's customer-focused business model. And for investors, this merger creates a unique platform that is well-positioned to compete for growth across the energy value chain. Under the terms of the agreement, on July 1, each share of AGL Resources common stock was canceled and converted into the right to receive $66.00 in cash, for a total purchase price of approximately $8 billion. AGL Resources common stock will cease trading on the New York Stock Exchange immediately prior to market open on July 1.

Editor
ATLANTA TREND™

For questions or feedback, please contact us at  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Social Media Corner

Subscribe ATLANTA TREND

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Enter Email Address
For Email Marketing you can trust

Market Report

Any data to show