CHARLOTTE, N.C. – Duke Energy and Piedmont Natural Gas announced Monday morning that both companies agreed to have Duke Energy acquire Piedmont for about $4.9 billion in cash.
“We look forward to welcoming Piedmont’s employees and one million customers in the Carolinas and Tennessee to Duke Energy,” said Lynn Good, president and CEO of Duke Energy, in a release on the company’s website. “This combination provides us with a growing natural gas platform, benefitting our customers, communities and investors.”
“This is an exciting moment for Piedmont Natural Gas, its shareholders, customers and employees,” said Tom Skains, chairman, president and CEO of Piedmont Natural Gas, in a written release. “The strategic combination of our two companies will deliver compelling value to our shareholders, greatly expand our platform for future growth, enhance our ability to provide excellence in customer service and give our employees more opportunities in one of the largest energy companies in the United States.”
Piedmont began operations in Charlotte in1951. Duke Energy was founded in 1904.
Duke Energy and Piedmont are key partners in the $5 billion Atlantic Coast Pipeline that will be the first major natural gas pipeline to serve Eastern North Carolina.
Piedmont will retain its name and will operate as a business unit of Duke Energy. Both companies will operate as separate entities until the transaction is complete.
The acquisition will have to be approved by the North Carolina Utilities Commission. The companies will also provide information regarding the acquisition to the Public Service Commission of South Carolina and the Tennessee Regulatory Authority.