By Stephen Nakrosis

Enbridge on Tuesday said it agreed to purchase three U.S. based utilities from Dominion Energy for $14 billion, which will facilitate the creation of the largest natural gas utility franchise in North America.

Dominion said the sale comes amid its ongoing business review. The $14 billion deal will see Enbridge acquire the East Ohio Gas Company, Public Service Company of North Carolina, and Questar Gas and its related Wexpro companies.

Enbridge said the purchase price comprises a $9.4 billion cash consideration and $4.6 billion of assumed debt. It has obtained debt financing commitments totaling $9.4 billion from Morgan Stanley and Royal Bank of Canada for the cash consideration component of the deals.

Enbridge also carried out a $4 billion Canadian dollar ($2.93 billion) bought-deal offering of common shares on Tuesday, which it said is expected to "fully address the company's planned discrete common equity issuance needs to finance this transaction."

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

September 05, 2023 17:10 ET (21:10 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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