Dominion Energy to buy Scana for $14.6bn

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

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.

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