Southern (NYSE:SO) and AGL Resources (NYSE:GAS) reported March 22 that they have received unanimous regulatory approval of the companies’ proposed merger from the California Public Utilities Commission (CPUC).
AGL Resources is the parent company of Central Valley Gas Storage, a natural gas storage facility located in the Sacramento River Valley.
The companies expect to complete the transaction in the second half of 2016.
Southern announced plans last August to buy AGL, a natural gas distributor which owns a stake in three major new pipelines being developed in the Eastern states.
Under the agreement, AGL Resources will become a new wholly owned subsidiary of Southern in a transaction with an enterprise value of approximately $12bn, including a total equity value of approximately $8bn.
When completed, the combination of the two Atlanta-based companies is expected to create the second-largest utility company in the United States by customer base, bringing together:
•Eleven regulated electric and natural gas distribution companies providing service to approximately 9 million customers;
•Operations of nearly 200,000 miles of electric transmission and distribution lines;
•More than 80,000 miles of gas pipelines; and
•Approximately 44,000 MW of electricity generating capacity.