May 26, 2026 | Energy | North America | Active
The relentless climb in AI-driven data centre power demand has pushed two US energy heavyweights together to form the world’s largest regulated electric utility. On 18-May-26, NextEra Energy agreed to acquire Dominion Energy in a $66.8bn all-stock deal, the largest energy transaction on record. The offer consideration is 0.8138 NextEra shares for each Dominion share, valuing Dominion at $75.98 per share and implying a 23.1% one-day takeover premium. Through completion, Dominion shareholders will continue to pay quarterly dividends, capped at a level defined in a non-public company disclosure letter. NextEra may continue its dividend “as has been done routinely in the ordinary course of business,” and the two have agreed to coordinate so no holder receives two dividends or misses one in any quarter. Importantly, the press release discloses that Dominion will additionally pay a “cash payment of $360m (which is taxable and is distributed equally across all outstanding Dominion Energy shares) at closing.” Pre-tax and based on 881.7m shares outstanding (879.5m common shares plus RSAs of 1.9m and shares underlying performance share awards), per the merger agreement, we calculate this to be worth $0.41 per share. Both boards have unanimously approved the deal and, post-completion, NextEra shareholders will own 74.5% of the combined company with Dominion shareholders owning the remaining 25.5%. The deal requires approval from both shareholder bases (50%). Regulatory clearances are required under HSR and from FERC and the NRC, alongside the public utility commissions of Virginia (VSCC), North Carolina (NCUC) and South Carolina (SCPSC). The merger agreement also mentions FCC approval, which appears in neither the announcement release nor the merger presentation. Notifications will ...
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