Power producer Dominion Resources to acquire Questar in a $4.4b deal

Power producer Dominion Resources Inc said it would buy natural gas distributor Questar Corp for about $4.4 billion in cash to expand its natural gas operations.

Dominion’s $25-per-share offer represents a premium of nearly 23 percent to Questar’s Friday close.

Weakening power demand due to increased energy efficiency has spurred a spate of deals between utilities and natural gas distributors, which enjoy relatively stable pricing thanks to a glut of supply from shale fields.

Duke Energy Corp, the largest U.S. power company by generation capacity, announced a $4.9 billion deal for Piedmont Natural Gas Co in October, while Southern Co said in August it would buy AGL Resources Inc for about $8 billion.

With Questar’s acquisition, Dominion will get about 27,500 miles (44,250 km)of gas distribution pipelines, 3,400 miles of gas transmission pipeline and 56 billion cubic feet of working gas storage.

The combined company will serve about 2.5 million electric utility customers and 2.3 million gas utility customers in seven states.

It will also operate more than 15,500 miles of natural gas transmission, gathering and storage pipelines and about 24,300 megawatts of power generation.

RBC Capital Markets LLC and Mizuho Bank Ltd were Dominion’s financial advisers and McGuireWoods LLP was its legal counsel.

Goldman Sachs & Co advised Questar, while Kirkland & Ellis LLP was its legal counsel.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.