NextEra Energy has announced plans to purchase Dominion Energy through an all-stock transaction worth approximately $67 billion, forming what would become a major utility powerhouse as artificial intelligence applications increase electricity demand nationwide.
The proposed acquisition represents one of this year’s largest merger announcements and would establish the globe’s biggest regulated electric utility company measured by market value, according to statements released by both firms on Monday.
The merged entity would provide service to roughly 10 million utility customer accounts spanning Florida, Virginia, North Carolina and South Carolina.
Richmond, Virginia-headquartered Dominion supplies electricity to hundreds of data facilities throughout Virginia while also delivering regulated power service to 3.6 million residential and commercial customers across Virginia, North Carolina, and South Carolina, plus regulated natural gas to 500,000 South Carolina customers.
NextEra, operating from Juno Beach, Florida, controls Florida Power & Light Company, which delivers electricity to approximately 12 million Florida residents. Last December, NextEra and Google Cloud revealed plans to expand their current partnership by developing new data center facilities nationwide.
This potential combination occurs as consumers concerned about rising electric costs are opposing AI data centers. Various governors, attorneys general and other officials protesting increasing electricity rates claim financially struggling residents face a dysfunctional system.
Government officials and legislators in no fewer than six states — Arizona, Indiana, Maryland, New Jersey, New York and Pennsylvania — are taking unprecedented steps to prevent utility rate hikes. Some are demanding utilities completely restructure how they fund major infrastructure improvements.
Under the agreement terms, Dominion shareholders would receive a fixed rate of 0.8138 NextEra Energy shares for every Dominion share they hold. Dominion stockholders would continue receiving Dominion’s existing quarterly dividend until the deal closes, plus a one-time $360 million cash distribution upon completion.
NextEra stockholders would control 74.5% of the merged company, with Dominion stockholders holding the remaining 25.5%.
NextEra CEO John Ketchum would lead the combined organization as chairman and CEO.
“We are bringing NextEra Energy and Dominion Energy together because scale matters more than ever— not for the sake of size, but because scale translates into capital and operating efficiencies. It enables us to buy, build, finance and operate more efficiently, which translates into more affordable electricity for our customers in the long run,” Ketchum said in a statement.
The merged company would maintain dual headquarters in Juno Beach, Florida, and Richmond, Virginia, while preserving Dominion Energy South Carolina’s current operational base in Cayce, South Carolina.
The organization would operate under NextEra’s brand and continue trading with its “NEE” symbol on the New York Stock Exchange. The board would consist of 10 NextEra directors and four from Dominion.
Both companies’ boards have approved the transaction, which is anticipated to finalize within 12 to 18 months. The deal requires shareholder approval from both NextEra and Dominion, plus various regulatory clearances, including Nuclear Regulatory Commission authorization.
Dominion shares surged more than 9.61% during morning trading, while NextEra stock dropped 5%.
