Natural gas-focused energy company Questar Corp. 's STR proposed purchase by Virginia-based Dominion Resources, Inc. D received nod from Public Service Commission of Utah, subject to certain terms and conditions.
The impending approval was a major regulatory hurdle and its sanction has moved the proposed combination of the duo one step closer to finalization. This $4.4 billion merger now requires the final regulatory approval of the Wyoming Public Service Commission. The transaction is expected to close in 2016 after the final regulatory approval is received.
The entity formed by the merger of Questar Corp and Dominion Resources will serve about 2.5 million electric utility customers and 2.3 million gas utility customers across seven states. Moreover, the integrated energy company will be operating more than 15,500 miles of natural gas transmission and approximately 25,700 megawatts of electric generation.
Dominion Resources is a major energy company engaged in regulated and non-regulated electricity distribution, generation and transmission businesses. In addition, it sells electricity at wholesale prices to rural electric cooperatives, municipalities and through wholesale electricity markets.
Questar Corp. is a natural gas-focused energy company with three principal subsidiaries - Wexpro Company, Questar Pipeline, and Questar Gas Company.
Both Questar and Dominion Resources currently carry a Zacks Rank #3 (Hold).
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