Duke Energy to buy Piedmont Natural Gas for $4.9 billion

Piedmont will retain its name, operate as a business unit of Duke Energy and maintain its presence and headquarters in southeast Charlotte.

The companies are partners in the $5 billion Atlantic Coast Pipeline that will be the first major natural gas pipeline to serve eastern North Carolina.

"This is an exciting moment for Piedmont Natural Gas, its shareholders, customers and employees," Tom Skains, chairman, president and CEO of Piedmont Natural Gas, said in a statement. "The strategic combination of our two companies will deliver compelling value to our shareholders, greatly expand our platform for future growth, enhance our ability to provide excellence in customer service and give our employees more opportunities in one of the largest energy companies in the United States."

When the deal is complete, Piedmont shareholders will receive $60 in cash for each share of Piedmont Natural Gas common stock.

Duke Energy will assume approximately $1.8 billion in Piedmont Natural Gas existing net debt, representing a total enterprise value of approximately $6.7 billion.

Duke Energy will add one member of Piedmont’s board of directors to its board after the transaction is closed. An existing member of Piedmont’s management team will lead Duke Energy’s natural gas operations in the Carolinas, Tennessee, Ohio and Kentucky.

"We look forward to welcoming Piedmont's employees and 1 million customers in the Carolinas and Tennessee to Duke Energy," Lynn Good, president and CEO of Duke Energy, said in a statement. "This combination provides us with a growing natural gas platform, benefiting our customers, communities and investors."