Kirkland & Ellis and McGuireWoods are advising on NextEra Energy’s acquisition of Dominion Energy for $67bn, one of the largest ever energy mergers.
The all-stock deal, which has an enterprise value of around $420bn and a market cap of approximately $249bn, will form one of the world’s biggest electric utilities during a growth spurt for energy-intensive data centres to support AI.
A Kirkland team, including corporate partners David Feirstein and Zach Savrick, is advising NextEra, the biggest US utility by market value.
Meanwhile, McGuireWoods is acting for longtime client Dominion, with the team led by partner Joanne Katsantonis, co-leader of the firm’s energy M&A and finance practice group, alongside associate John Yates. Michael Woodard, co-leader of the firm’s renewable energy practice group, is also working on the deal alongside partners Emilie McNally and Christopher Keegan.
McGuireWoods previously advised Dominion on deals including its offshore wind partnership with Stonepeak in 2024 and its $13bn merger with South Carolina-based SCANA Corporation in 2019.
Upon completion of the Dominion acquisition, NextEra shareholders will own approximately 74.5% of the combined company with Dominion shareholders retaining the remainder.
Dominion shareholders also will continue to receive Dominion’s current quarterly dividend through closing, plus a share of a one-time cash payment of $360m at closing.
The combined company will serve approximately 10 million utility customer accounts across the US Southeast and own 110 gigawatts of generation, the largest in the US.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in 12 to 18 months, subject to customary closing conditions and approvals.
Lazard acted as lead financial advisor, with BofA and Wells Fargo also serving as financial advisors, to NextEra on the deal. Goldman Sachs & Co. and JP Morgan Securities are acting as co-financial advisors to Dominion.
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