This article first appeared on GuruFocus.
NextEra Energy (NYSE:NEE) fell 0.99% and Dominion Energy (NYSE:D) jumped 14.68% after the two companies announced an all-stock merger that would create the largest regulated electric utility in the United States. NextEra will acquire Dominion in a deal valued at $66.8 billion in equity, the largest utility acquisition on record.
Under the terms, Dominion shareholders receive 0.8138 NextEra shares for each share they hold, plus a pro rata portion of a $360 million one-time cash payment at close. The implied value, based on Friday’s NextEra closing price, is approximately $76 per Dominion share, a roughly 23% premium to Dominion’s Friday close of $61.73. Existing NextEra shareholders will own approximately 74.5% of the combined entity.
Dominion’s service territory includes nearly 51 gigawatts of contracted data-center capacity, with customers spanning Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), Equinix (NASDAQ:EQIX), CoreWeave (NASDAQ:CRWV) and CyrusOne.
