Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FTC approves acquisition of Piedmont Natural Gas by Duke Energy, (Dec 23, 2015)
Organizations Mentioned:Duke Energy | Piedmont Natural Gas
IBy Linda O’Brien, J.D., LL.M.
Duke Energy's proposed $4.9 billion acquisition of Piedmont Natural Gas has cleared a key condition needed for completion, according to a joint statement by the two companies yesterday. The FTC has granted early termination of the 30-day waiting period under the Hart-Scott-Rodino Act with regard to the acquisition.
Headquartered in Charlotte, North Carolina, Duke Energy is the largest electric power holding company in the United States. Its regulated utility operations serve approximately 7.3 million electric customers located in six states in the Southeast and Midwest.
Piedmont Natural Gas is an energy services company, primarily engaged in the distribution of natural gas to more than one million residential, commercial, industrial, and power-generation utility customers in portions of North Carolina, South Carolina, and Tennessee, including customers served by municipalities that are wholesale customers.
In an October 2015 joint press release, Duke Energy and Piedmont Natural Gas announced that the boards of directors of both companies unanimously approved a definitive agreement for Duke Energy to acquire Piedmont for approximately $4.9 billion in cash.
Piedmont Natural Gas began operations in 1951 in Charlotte, and Duke Energy was founded in 1904. Both companies have played leading roles in supporting economic development in the Carolinas and establishing the Charlotte region as a major hub for energy companies, according to the press release.
The transaction still requires approval by Piedmont shareholders and the North Carolina Utilities Commission. Duke Energy and Piedmont also are providing information regarding the acquisition to the Public Service Commission of South Carolina and the Tennessee Regulatory Authority. The companies anticipate closing the transaction by the end of 2016.
Companies: Duke Energy; Piedmont Natural Gas
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