WASHINGTON — Canadian energy company AltaGas Ltd has agreed to acquire Washington Gas parent company WGL Holdings in a deal worth about $6.4 billion.
Calgary, Alberta-based AltaGas would pay WGL shareholders $88.25 per share, nearly 12 percent more than WGL stock traded for before Wednesday’s announcement, made after the markets closed.
The announcement comes a little less than a year after Exelon Corp. closed on its $6.8 billion acquisition of Pepco Holdings, a deal that took two years to complete.
WGL Holdings president and chief operating officer Adrian Chapman tells WTOP he thinks the utilities can work through the regulatory process in about 12 months.
If the acquisition is approved by regulators, WGL Holdings would continue to operate as a stand-alone utility headquartered in D.C. AltaGas would also move the headquarters of its U.S. power business to D.C., bringing about 20 jobs to the area initially.
WGL Holdings has between 1,450 and 1,500 employees in Washington.
WGL Holdings was reportedly the target of a takeover offer late last year by Spanish utility Iberdrola, though no agreement was ever reached.
Chapman says WGL Holdings has not been actively seeking a buyer.
“We have been doing well financially. Shareholders have seen great returns, and we have continued to increase our dividends, all of which I think have made us attractive to other utilities.” Chapman told WTOP.
Washington Gas has about 1.1 million customers in the D.C. region. WGL Holdings also operates a natural gas storage business and a gas pipeline division.
AltaGas runs power plants across North America, and owns two other U.S. gas utilities — Michigan gas utility Semco Energy Gas Co. and Alaska gas utility Enstar Natural Gas Co.
