US-based power company Dominion Energy and SCANA have completed their proposed energy merger for approximately $13.4bn.
Each SCANA share was converted into 0.6690 shares of newly issued Dominion Energy common stock, which was valued at nearly $6.8bn, in addition to the assumption of approximately $6.6bn in existing consolidated SCANA net debt.
Upon completion of the energy merger, Dominion Energy has further expanded its presence in Georgia, North Carolina, South Carolina regions.
Dominion Energy chairman, president and CEO Thomas F Farrell said: “Dominion Energy is pleased to add SCANA’s fast-growing, high-performing south-eastern businesses to our 18-state footprint.
“Together, we are committed to providing safe, dependable, affordable and clean energy to the communities served by SCANA and to maintaining its excellent record of reliability and customer service.
“The addition of SCANA makes geographic sense and aligns well with our core, regulated energy businesses. These are well-run regulated operations that we expect will help improve Dominion Energy’s risk profile and growth outlook.”
In December 2018, the Public Service Commission of South Carolina (SCPSC) approved the merger between Dominion Energy and SCANA. The SCPSC approved a customer benefits plan that reduces customer bills below existing levels.
SCANA CEO Jimmy Addison said: “Today marks a significant milestone in the history of Dominion Energy and SCANA. Employees at our respective companies have been working hard for months on integration planning, and I am confident that will lead to a smooth transition.
“These two companies share common values, and this combination provides SCANA’s businesses with the scale and stability to meet customers’ growing energy needs in the years to come.”
SCANA will now become a first-tier, wholly owned subsidiary of Dominion Energy and its operating companies include South Carolina Electric & Gas Company, Public Service Company of North Carolina, and SCANA Energy Marketing. Its services company will be managed by a new operating segment, the Southeast Energy Group.