North Carolina-based utility company Duke Energy has completed its acquisition of Piedmont Natural Gas, closing the transaction effective Oct. 3.
The deal is worth approximately $4.9 billion in cash and assumption of approximately $1.8 billion in Piedmont existing net debt, representing total enterprise value of approximately $6.7 billion. Piedmont will retain its name and operate as a business unit of Duke Energy. Both companies are headquartered in Charlotte.
The acquisition will add Piedmont’s 1 million natural gas customers in North Carolina, South Carolina and Tennessee to Duke Energy’s existing customer base of 525,000 natural gas customers and 7.4 million electric customers. Piedmont’s Tennessee service territory represents a new addition to Duke Energy’s footprint and includes the growing Metropolitan Nashville area and seven middle-Tennessee counties.
“Uniting Duke Energy with Piedmont Natural Gas is a powerful combination for our customers and the communities we serve,” said Lynn Good, chairman, president and CEO of Duke Energy.
Customers can continue to do business with both companies in the same way they have in the past. For example, there will be no immediate changes in customer service phone numbers, billing options or service request procedures.
Internally, Duke Energy will be working to integrate Piedmont’s corporate functions, such as accounting, human resources and information technology.
The North Carolina Utilities Commission (NCUC) approved the acquisition on Sept. 29, marking the final regulatory ruling needed to complete the transaction.
“This combination provides clear benefits to our customers and the environment as we continue to expand our use of low-cost and clean natural gas and invest in pipelines,” Good said. “We have enjoyed an excellent relationship with Piedmont’s team for years, and we are eager to welcome them to Duke Energy in the coming days.”
The Tennessee Regulatory Authority and Piedmont’s shareholders previously approved the transaction, and the U.S. Federal Trade Commission has already granted early termination of the waiting period under the federal Hart-Scott-Rodino Antitrust Improvements Act.