The proposed merger of AltaGas Ltd. and WGL Holdings, Inc. achieved an important regulatory approval on July 6 when the Federal Energy Regulatory Commission (FERC) granted its approval of the merger. FERC is an independent agency that regulates the interstate transmission of natural gas, electricity and oil.
AltaGas and WGL filed an application with FERC on April 24, 2017, to request authorization for the transaction. The July 6 FERC order concluded that the proposed transaction is consistent with the public interest and is authorized.
The proposed plan to combine operations was announced in January 2017. The FERC action is an important step toward completing the transaction, which is expected to close in the second quarter of 2018. The combined company stands to deliver more clean energy choices, more investments in the community, and a commitment to good, secure jobs, as well as affordable prices and best-in-class service.
As previously announced, WGL shareholders voted to approve the proposed merger in May, and the Boards of Directors of WGL and AltaGas have unanimously approved the transaction.
Under the terms of the transaction, following the consummation of the merger, WGL shareholders will receive US $88.25 in cash per WGL share, representing a premium of 27.9% to WGL's closing share price on November 28, 2016, the day prior to news reports of a potential acquisition of WGL by a third party.
The transaction is subject to other closing conditions, such as approvals of the Public Service Commission of the District of Columbia, the Maryland Public Service Commission and the Virginia State Corporation Commission, based on filings submitted on April 24, 2017, to each commission. The review of the filings is underway in all three jurisdictions. The companies also have filed their voluntary Joint Notice to the Committee on Foreign Investment in the United States. In addition, the transaction is subject to the notification and reporting requirements under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
For more information about the proposed merger of AltaGas Ltd. And WGL Holdings Inc., please visit www.wgldeliveringmore.com.