Merger Will Create Natural-Gas Super Company

December 07, 2010

Do you use Nicor gas in your Chicago home? Then you might want to know that Nicor Inc. has been sold.

AGL Resources has agreed to purchase the Naperville-based gas company for $2.4 billion in money and stock.

Gas burner lit up.The deal would create one of the largest natural-gas distributors in the United States, and the combined companies will have an enterprise value of $8.6 billion.

AGL Resources will keep its corporate headquarters in Atlanta, Georgia, and will locate its newly expanded gas distribution headquarters in Naperville.

The merged companies will produce:

*Approximately $5.1 billion in annual revenues

*Seven regulated natural gas distribution companies that will provide natural gas service to approximately 4.5 million customers in Illinois, Georgia, New Jersey, Virginia, Florida, Tennessee and Maryland

*More than 1 million retail customers in the unregulated business

*Physical wholesale gas business delivering about 4.7 billion cubic feet (Bcf) per day to gas customers

*Facilities across the natural gas storage value chain that will provide 31 billion cubic feet of storage in 2012 with expansion potential up to 90 Bcf

“This is an exciting transaction for both AGL Resources and Nicor. Together we will establish a platform for growth that is superior to what either company could achieve on its own,” said John W. Somerhalder II, AGL Resources’ chairman, president and chief executive officer. “AGL Resources has a proven track record of successful acquisitions and integrations spanning the last decade. Our prudent acquisitions have allowed us to improve and provide services to our customers at a much lower cost, while taking an active role in supporting the communities we serve.”

AGL has promised to maintain local jobs for three years and will continue Nicor’s community work for five years.

It also promises that local Nicor customers will continue to get the same high-quality, cost-effective and reliable service. Guess we’ll see.

The transaction is expected to be complete in the second half of 2011.


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In Australia AGL have not mentioned this – I wonder what they have in store for Aussie Gas Companies

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