The purchase of Florida City Gas is targeted to be concluded in the first six months of 2019, while Gulf Power and the natural-gas generating plants’ acquisition is expected to be completed by 3Q18.
Florida Power & Light’s (FPL) parent company will fund this purchase through the issuance of new debt, while Southern Company will utilize the amount from this transaction to cut down its debt and enrich its balance sheet.
Last year, NextEra Energy’s $18.7-billion merger deal with Energy Future Holdings was dismissed by Texas Public Utility Commission since the Commission felt that the agreement was not in the public interest.
For their recently ended first quarter, both the utility companies reported results that beat estimates. In the past one year, the shares of NextEra Energy have surged 19% while that of Southern Company have dipped 14%. On this buyout news, shares of the acquiring company went up 2%, while the Atlanta-based energy company’s stock rose 1.5% in the early hours of trading today.