• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 4 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 21 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 22 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 23 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 22 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 21 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 2 days Itt looks like natural gas may be at its lowest price ever.
  • 1 day Saudi A to Splash $100 Bln on India
  • 23 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 2 hours Washington Eyes Crackdown On OPEC
  • 2 days Amazon’s Exit Could Scare Off Tech Companies From New York
  • 20 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 1 day NEW FERUKA REFINERY

CenterPoint Energy To Buy Indiana-Based Vectren For $6B

Power

Houston-based CenterPoint Energy and Indiana-based Vectren said on Monday that they had agreed to merge in a US$6-billion transaction to become a leading U.S. energy delivery, infrastructure, and services company.

Under the proposed deal, approved by the boards of directors of the two companies, Vectren shareholders will receive US$72.00 in cash for each share of Vectren common stock, and CenterPoint Energy will also assume all outstanding Vectren net debt.

CenterPoint expects to fund the deal through a combination of equity and debt.

The resulting company will be named CenterPoint Energy and will have its corporate headquarters in Houston. Vectren will become a CenterPoint Energy company, while the merged company’s natural gas utilities operations and the Indiana electric operation will be headquartered in Evansville, Ind.

The parties expect the combined company to have electric and natural gas delivery operations in eight states, serving more than 7 million customers. The company will have total assets of US$29 billion and an enterprise value of US$27 billion.

The closing of the deal is subject to approval by Vectren shareholders, and approvals from the Federal Energy Regulatory Commission and Federal Communications Commission, among others.

The closing is expected by the first quarter of 2019. 

Related: Venezuelan Oil Enters The Disaster Zone

The proposed merger is the latest in a consolidation wave involving U.S. utilities after consumption in some parts of the U.S. has started to flatten.

Last month, Sempra Energy completed its US$9.45-billion acquisition of a majority stake in Texas’s Oncor Electric Delivery Company to create a utility holding company with the largest U.S. customer base.

In addition, Canada’s Hydro One is proposing to buy Spokane-based Avista Corporation in a C$6.7 billion (US$5.3 billion) all-cash deal, which has yet to clear regulatory hurdles. Public hearings in Spokane are still being held on the proposed transaction, which would go ahead if the Washington Utilities and Transportation Commission rules that it is in the best interest of Avista’s ratepayers. The deal also needs federal authorities’ approval and other public service commissions in Washington state.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News