Dominion Energy to buy Scana for $14.6bn

The Virginia power company, Dominion Energy, is to buy Scana Corp, the utility company based in South Carolina.

The stock-for-stock deal, which values Scana at approximately $7.9bn, will include the utility company’s debt.

Subsequent to the announcement of the deal, Scana’s shares surged 27% in premarket trading.

The deal, valued at $14.6bn, is to be Dominion’s largest ever acquisition.

The two companies revealed that the utility’s shareholders are to receive 0.6690 shares of Dominion Energy per share held in Scana, which is approximately $55.35.

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The Richmond-based company will be offering $1,000 payments to the average residential customer, whilst also committing to 5% rate cuts.

“Dominion acquiring Scana makes a lot of sense,” commented Shahriar Pourreza, an analyst for Guggenheim Securities.

Scana’s shares dropped rapidly between June 2017 and this month, falling from trading at $70 to just $48.

“Dominion is still going to have a very big uphill climb” added Mr Pourreza.