AltaGas Ltd. to Acquire WGL Holdings, Inc. in C$8.4 Billion takeover

AltaGas Ltd. is purchasing U.S. power and utility company WGL Holdings Inc. in an arrangement worth $8.4-billion.

“We are fortunate to be buying a storied company with nearly 170 years of history, which in many ways is nearly the mirrored image of AltaGas,” said company chief executive David Harris on an analyst call Wednesday.

The Calgary-based company says the deal will position it as a leading diversified energy infrastructure firm in North America.

“This transaction is highly transformative for our company by increasing both our scale and breadth of quality assets, while maintaining our corporate DNA,” said Harris.

WGL additionally possesses extensive pipeline and midstream energy asssets and in addition clean power venture and natural gas generation offices in the U.S.

Last March, TransCanada Corp. declared it was assuming control over the Columbia Pipeline Group for US$13 billion, while Enbridge Inc. consented to the $37-billion takeover of Spectra Energy last September in what was the biggest ever foreign takeover by a Canadian company.

Under the terms of the agreement, WGL shareholders would get US$88.25 in cash per WGL share, which represents 11.8% premium to WGL’s end share cost on Tuesday.

AltaGas says the transaction represents an aggregate estimation of $8.4 billion, including the assumption of roughly C$2.4 billion of debt.