Enbridge to purchase 3 U.S. utilities for $14B in cash and debt

Enbridge Inc. says it has signed a US$14 billion cash-and-debt deal to purchase three U.S.-based utility companies.

The Calgary-based energy infrastructure giant says the three utilities, owned by Dominion Energy, Inc., are The East Ohio Gas Company, Questar Gas Company and its related Wexpro companies, and the Public Service Company of North Carolina.

Enbridge says it will finance the deal through a combination of $US9.4 billion of cash consideration and US$4.6 billion of assumed debt.

The Canadian company says the deal will double the scale of its gas utility business and will serve to balance its asset mix evenly between natural gas and renewables, and liquids.

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Enbridge says following the transaction, its gas utility business will be the largest by volume in North America with a combined rate base of over C$27 billion and about 7,000 employees delivering over nine billion cubic feet per day of gas to approximately seven million customers.

The deal is subject to regulatory approval and expected to close in 2024.