NextEra Energy agreed to acquire Dominion Energy in a roughly $67 billion all-stock deal announced May 18, creating the world’s largest regulated electric utility by market capitalization and marking the biggest power acquisition in U.S. history.
Under the terms, Dominion Energy shareholders will receive a fixed exchange ratio of 0.8138 shares of NextEra Energy for each Dominion share they own, along with a one-time $360 million cash payment at closing, according to the companies’ joint announcement. NextEra Energy shareholders will own approximately 74.5% of the combined company, while Dominion Energy shareholders will own 25.5%.
The combined entity will serve approximately 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina, operating more than 80% as a regulated utility business. It will own 110 gigawatts of generation capacity across a diverse mix of energy sources.
Electricity demand is rising faster than it has in decades, driven largely by the explosive growth of artificial intelligence data centers requiring massive amounts of power. “Electricity demand is rising faster than it has in decades,” NextEra CEO John Ketchum said in a statement. “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 combined company will have more than 130 gigawatts of large-load opportunities in its pipeline, positioning it to capture data center demand across the region.
To address customer concerns, the companies are committing $2.25 billion in bill credits spread over two years post-close for Dominion Energy’s customers in Virginia, North Carolina and South Carolina. NextEra Energy also plans to increase annual charitable giving by $10 million for five years.
The transaction is structured as a 100% stock-for-stock deal and is expected to be tax-free to shareholders. The combined company will operate under the NextEra Energy name and trade on the New York Stock Exchange under ticker NEE. Both companies will maintain significant local presence, with dual headquarters in Juno Beach, Florida, and Richmond, Virginia, and Dominion Energy South Carolina’s operational headquarters in Cayce, South Carolina.
The companies expect the deal to close in 12 to 18 months, subject to shareholder approval and regulatory approvals from the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, and state utility commissions in Virginia, North Carolina and South Carolina. The transaction has been unanimously approved by the boards of both companies.
Dominion Energy shareholders will continue to receive Dominion’s current quarterly dividend through closing, plus the one-time cash payment. Thereafter, Dominion shareholders will participate in NextEra Energy’s dividend growth policy. NextEra Energy projects 9% or higher adjusted earnings-per-share growth through 2032, with the combined company anchored by an expected 11% annual growth in regulatory capital employed across the four states it will serve.
