Texas-based CenterPoint Energy has completed its previously announced $6bn merger of rival US gas and electric utility Vectren.
The enlarged electric and natural gas utility, which is made up of regulated electric and natural gas utility businesses in eight states, will be headquartered in Houston, Texas. Operating under the name CenterPoint Energy, the combined entity will serve over seven million metered customers in nearly 40 states.
The merged company, which has an enterprise value of $27bn, boasts of assets totaling around $29bn and a workforce of around 14,000 employees.
The Indiana-based Vectren supplies gas and/or electricity to more than a million customers in adjoining service territories that cover nearly two-thirds of Indiana and around 20% of Ohio.
As per the merger agreement signed in April 2018, CenterPoint Energy will pay shareholders of Vectren $72.00 and a prorated dividend of $0.41145, in cash, for each share they hold in the Indiana-based utility. The merger was approved by the US Federal Energy Regulatory Commission (FERC) in October 2018.
The combined company’s businesses include electric utility business, natural gas utility business and competitive energy businesses.
Through the electric utility business, the company will serve 2.4 million customers in the greater Houston area and 145,000 customers in Indiana. It will also own and operate about 1.3GW of power generation capacity in Indiana.
Its natural gas utility business, which will be headquartered in Indiana, will supply natural gas to 4.5 million homes and businesses across eight states.
The enlarged utility’s energy businesses include natural gas marketing and energy-related services, energy efficiency, construction and repair services for pipeline systems, and sustainability and infrastructure modernization solutions.
CenterPoint Energy president and CEO Scott Prochazka said: “With a greater level of business operations, resources and capabilities, we plan to execute a unified business strategy focused on the safe and reliable delivery of electricity, natural gas and energy-related services.
“It is a time of transformation for our industry, and I believe CenterPoint Energy will be well positioned to deliver traditional energy services with innovative solutions that meet customers’ evolving needs and expectations.”