Canadian energy infrastructure company AltaGas has entered into of a definitive agreement and plan a merger with US energy company WGL, in an all cash transaction of approximately C$8.4bn (US$6.4bn).
With activities and assets across the United States, WGL consists of Washington Gas, WGL Energy, WGL Midstream and Hampshire Gas providing gas, electricity and energy services, including generation, storage, transportation, distribution, supply and efficiency to 275,000 retail customers in Maryland, Virginia, Delaware, Pennsylvania and the District of Columbia.
Upon closing of the transaction, AltaGas will have a C$22bn (US$16.8bn) regulated and un-regulated businesses asset base and will be active in 30 US states and Canadian provinces. The company will hold eight gas utility franchises, a large midstream and energy export footprint in both the Montney and the Marcellus/Utica gas formations in the United States and a substantial contracted renewable power and energy efficiency business in over 20 states and provinces.
The transaction is expected to close by the end of the second quarter of 2018.