AltaGas to buy WGL in C$8.4 billion deal in gas distribution push
(Reuters) - Canadian energy infrastructure company AltaGas Ltd ALA.TO said it would buy U.S.-based WGL Holdings Inc (WGL.N: Quote) in a deal valued at C$8.4 billion ($6.42 billion), the latest company pushing deeper into natural gas distribution.
AltaGas will offer WGL Holdings shareholders $88.25 per share held, a 12 percent premium to the stock's Wednesday close.
WGL Holdings's shares were trading at $81.60 in after-market trading.
WGL Holdings, the parent of natural-gas utility Washington Gas, provides natural gas services in Maryland, Virginia and the District of Columbia.
The company also has a retail energy-marketing business and operates natural-gas distribution facilities.
AltaGas's deal for WGL follows Dominion Resources Inc's (D.N: Quote) $4.4 billion buyout of Questar Corp STR.N last year.
Duke Energy Corp (DUK.N: Quote), the largest U.S. power company by generation capacity, said in 2015 it would buy Piedmont Natural Gas Co PNY.N for $4.9 billion.
Energy firms are betting on natural gas distribution, given rising demand from homes and businesses, and to help offset shrinking profits at utility businesses due to waning power demand.
Calgary-based AltaGas, which operates in the United States and Canada, has three businesses - natural gas gathering and processing, power generation and utilities that deliver natural gas to homes and businesses. Continued...