CHARLOTTE, N.C. — Duke Energy and Piedmont Natural Gas announced Monday morning that the boards of directors of both companies have unanimously approved an agreement for Duke to acquire Piedmont for roughly $4.9 billion in cash.
"We look forward to welcoming Piedmont's employees and one million customers in the Carolinas and Tennessee to Duke Energy," said Lynn Good, president and CEO of Duke Energy. "This combination provides us with a growing natural gas platform, benefitting our customers, communities and investors."
"This is an exciting moment for Piedmont Natural Gas, its shareholders, customers and employees," said Tom Skains, chairman, president and CEO of Piedmont Natural Gas. "The strategic combination of our two companies will deliver compelling value to our shareholders, greatly expand our platform for future growth, enhance our ability to provide excellence in customer service and give our employees more opportunities in one of the largest energy companies in the United States."
Piedmont will retain its name, operate as a business unit of Duke Energy and maintain its presence and its headquarters in Southeast Charlotte.
Duke Energy will add one member of Piedmont’s board of directors to its board after the transaction is closed. An existing member of Piedmont’s management team will lead Duke Energy’s natural gas operations in the Carolinas, Tennessee, Ohio and Kentucky, and report to Good.
Piedmont Natural Gas began operations in 1951 in Charlotte and Duke Energy was founded in the city in 1904.
Duke Energy and Piedmont also are key partners in the $5 billion Atlantic Coast Pipeline that will be the first major natural gas pipeline to serve Eastern North Carolina.
Upon transaction closing, Piedmont shareholders will receive $60 in cash for each share of Piedmont Natural Gas common stock, which represents an approximate 40 percent premium to Piedmont’s Oct. 23, 2015 closing stock price.
Duke Energy will also assume approximately $1.8 billion in Piedmont Natural Gas existing net debt, representing a total enterprise value of approximately $6.7 billion.
The companies are targeting a closing by the end of 2016 and will continue to operate as separate entities until the transaction is completed.
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