AltaGas, the company that plans to build a propane export terminal on Ridley Island, announced today that it is acquiring WGL Holdings Inc. — a deal worth $8.4 billion.
The merger will expand Calgary-based AltaGas Ltd. to Washington, D.C. where the headquarters for Washington Gas Light Company is located. The natural gas company serves the capital city and more than one million customers in the District of Columbia, Maryland and Virginia.
“This acquisition provides us with a robust, complementary set of energy businesses that greatly increase our scale and diversity,” David Harris, the president and CEO of AltaGas said.
With the merger, AltaGas will have natural gas rate base assets of $4.5 billion. The transaction will also assume $2.4 billion of debt.
“Both companies are strong utility operators, have a sweet spot of pipeline and midstream investments in premier supply basins, and have power generation businesses weighted to clean energy and innovations,” Harris said.
Once the deal is closed, AltaGas will have 3,300 employees across operations in more than 30 provinces and states. On Jan. 3 the company announced its final investment decision to build the $500 million Ridley Island Propane Export Terminal. Construction is expected to begin early this year.
More to come.