Energy acquisition news : US electric and natural gas utility CenterPoint Energy has struck a deal of about $6 billion to acquire its rival natural gas utility Vectren.

CenterPoint acquisition of Vectren is expected to result in a top energy delivery, infrastructure and services company catering to over 7 million customers in the US.

The Texas-based CenterPoint Energy is into natural gas distribution, electric transmission and distribution, natural gas marketing business and also in providing heating and cooling solutions. Its power transmission and delivery services are pertained to a 5,000 square-mile region that includes Houston. Its natural gas distribution operates in half a dozen states – Texas, Arkansas, Louisiana, Minnesota, Mississippi and Oklahoma.

On the other hand, the Indiana-based Vectren provides natural gas to nearly one million customers in the states of Indiana and Ohio. The company also provides electricity to over 140,000 customers in southwestern Indiana. Vectren is also the owner and operator of 1.248GW generating power plants in Indiana.

As per the terms of the CenterPoint acquisition of Vectren, CenterPoint will pay $72.00 for each share of Vectren in an all-cash deal apart from assuming the Indiana-based utility’s net debt.

Commenting on CenterPoint acquisition of Vectren, Scott M. Prochazka – president and CEO of CenterPoint Energy, said: “By combining our two highly complementary companies, we are creating an energy delivery, infrastructure and services leader that will drive value for our shareholders and customers, while enhancing growth opportunities for our businesses.

“From the evolution of customer expectations to the development of innovative technologies, this is a time of extraordinary opportunity for our industry. As a combined company, we will continue to focus on a future that benefits our customers, employees, communities and shareholders.”

After the CenterPoint Vectren merger, the enlarged gas and electric utility company will have operations across eight states with total asset value of $29 billion and $27 billion enterprise value.

Carl L. Chapman – president and CEO of Vectren, commenting on CenterPoint acquisition of Vectren, said: “With CenterPoint Energy, we’ve found the right partner to begin the next chapter for Vectren and our family of companies. They share the same core values and dedication to the communities they serve, which is evidenced by the commitments they have made to our employees, philanthropic outreach, and Evansville, Ind., our home, where CenterPoint Energy will locate the newly combined company’s natural gas utility operations headquarters.

“Together, we will be a stronger, more competitive company that will be well-positioned to continue to provide value for our stakeholders in the years to come.”

Completion of the CenterPoint acquisition of Vectren, which is anticipated to be done by Q1 2019, will be subject to approval from Vectren shareholders, Federal Energy Regulatory Commission (FERC) and Federal Communications Commission (FCC) approvals and either expiration or termination of the Hart-Scott-Rodino waiting period.

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