Duke Energy and Piedmont Natural Gas announced Monday that both of their boards of directors unanimously approved the agreement for Duke Energy to acquire Piedmont for approximately $4.9 billion in cash.
Duke Energy, the largest electric power holding company in the U.S., will also assume some $1.8 billion of Piedmont Natural Gas, the gas distribution firm's existing net debt bringing the total value of the acquisition to $6.7 billion.
The two companies are also partners in the $5 billion Atlantic Coast Pipeline, which will be the first major gas pipeline to serve the eastern regions of the U.S. state of North Carolina.
"This combination provides us with a growing natural gas platform, benefitting our customers, communities and investors," Lynn Good, president and CEO of Duke Energy, said in the statement.
The two companies said they expect the agreement to close by the end of 2016.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr