AltaGas Ltd. received the last regulatory approval necessary for its $4.5 billion acquisition of WGL Holdings Inc., the closing of which is scheduled for July 6.
"The combination of AltaGas and WGL is a powerful one, with a North American footprint comprised of over $20 billion of high quality, low-risk and long-lived infrastructure assets, and one which provides meaningful benefits for both customers and shareholders," AltaGas President and CEO David Harris said in a news release.
The Public Service Commission of the District of Columbia was the last regulatory agency to grant approval for the proposed merger, and AltaGas released a statement July 2 accepting the conditions outlined by the commission.
The approval by the District of Columbia PSC follows AltaGas and WGL in May reaching a unanimous settlement agreement with key stakeholders in that jurisdiction. WGL Holdings is headquartered in the Washington, D.C., and supplies natural gas to 1.1 million customers. Under the settlement, AltaGas and WGL committed approximately $41 million in direct benefits for the District of Columbia, including among other things, $26 million in rate credits distributable among both residential and nonresidential customers, $6 million over two years to promote local employment in the energy sector, and $4.2 million for energy efficiency and energy conservation initiatives.
AltaGas on Jan. 25, 2017, announced it had reached an agreement to acquire WGL Holdings for $88.25 per share. AltaGas is headquartered in Calgary, Alberta, and serves 580,000 customers through natural gas utilities. Its holdings also include natural gas gathering and processing, natural gas liquids extraction and fractionation, transmission and storage, marketing, and power generation.