NextEra Energy and Dominion Energy have agreed to an all-stock merger, creating the world’s largest regulated electric utility business and one of the world’s largest energy infrastructure companies.
The combined entity will operate under the NextEra Energy name, and trade on the New York Stock Exchange under the ticker symbol NEE, serving roughly 10 million utility customer accounts across Florida, Virginia, North Carolina, and South Carolina with a massive 110-gigawatt generation portfolio.
Under the terms of the agreement, Dominion shareholders will receive a fixed exchange ratio of 0.8138 NextEra shares for each share held, alongside a one-time cash payment of US$360 million (AU$507 million) at closing.
Upon completion, NextEra shareholders will own approximately 74.5 per cent of the merged company, with Dominion shareholders holding the remaining 25.5 per cent.
The companies emphasised that the deal is built around customer affordability, driven by unprecedented operational scale at a time when North American electricity demand is surging.
Additionally, the companies have proposed US$2.25 billion in bill credits for Dominion customers across the Carolinas and Virginia, spread over two years post-closing.
NextEra Energy Chairman and CEO John Ketchum, who will lead the combined group, highlighted that scale has never mattered more.
“Electricity demand is rising faster than it has in decades. Projects are getting larger and more complex,” Ketchum said.
“We are bringing NextEra Energy and Dominion Energy together because scale matters more than ever— not for the sake of size, but because scale translates into capital and operating efficiencies.”
The corporate structure will feature dual headquarters in Juno Beach, Florida, and Richmond, Virginia. Dominion’s local utilities will retain their names and regional leadership teams, with employment commitments secured for Dominion’s 15,000 workers.
Robert Blue, the current president and CEO of Dominion Energy, who will serve as president and CEO of regulated utilities and as a member of the board of directors of the merged entity, noted that the merger will bring together two strong operating platforms.
“This combination brings together two strong operating platforms and creates an even stronger energy partner for Virginia, North Carolina, South Carolina and Florida, with the scale and balance sheet to deliver the generation, transmission and grid investments our customers and economies need.”
The merger tie-up is expected to be immediately accretive to adjusted earnings per share, targeting over 9 per cent growth through 2032.
Backed by a combined US$138 billion rate base, the transaction has been unanimously approved by both boards and is expected to close within 12 to 18 months, subject to shareholder and regulatory approvals.
