The boards of directors of both WGL Holdings and AltaGas unanimously approved a definitive merger agreeement for WGL to be acquired by AltaGas in a $6.4 billion all-cash transaction.
WGL will now be part of a new business entity that is twice its current size with a broader and complementary set of energy businesses. This increase in scale and diversity of businesses will allow WGL to continue to grow through a larger and more geographically diverse enterprise, the company said.
“This acquisition provides us with a robust, complementary set of business segments that greatly increase our scale and diversity,” said David Harris, president and CEO of AltaGas.
AltaGas is a leading North American diversified energy infrastructure company with a focus on natural gas, power and regulated utilities. AltaGas creates value by acquiring its energy infrastructure, with a focus on clean energy sources.
WGL will benefit from AltaGas’ complementary focus on building a diversified mix of gas, power and utility assets to provide clean and affordable energy to its customers.
“We are confident that, together, we will be a more diverse and stronger company that will open up new and exciting opportunities to provide value for all of our stakeholders,” said Terry McCallister, chairman and CEO of WGL.
As a result of the transaction, WGL companies and employees will become part of a larger, more broad-based, multinational organization. WGL will maintain its utility headquarters in Washington, D.C. and continue to manage its regulated utility business, while also assisting in the management of AltaGas’ U.S. regulated utility business. AltaGas also intends to relocate the headquarters of its U.S. power business to WGL’s service region
Including WGL, the new company will have its operations and assets in the United States and Canada. These efforts will not only allow WGL to maintain its significant presence in the Washington, D.C., metropolitan area, but will also incorporate AltaGas into the community. As such, WGL and AltaGas look forward to continuing to provide their customers with excellent service. WGL will also increase its substantial level of community involvement and charitable giving.
Following the closing of the transaction, WGL’s natural gas utility will continue to be regulated by commissions in the District of Columbia, Maryland and Virginia, and operate under the Washington Gas brand. WGL’s experienced workforce will continue delivering high quality service to its customers at reasonable rates.