The American gas company Spire Inc. has signed an agreement with Duke Energy Corp. acquisition of the Tennessee Piedmont Natural Gas division for $2.5 billion. This is reported in a press release from Spire.
As part of the deal, Spire expects to expand its presence in Tennessee, as Tennessee Piedmont is the state's largest natural gas company with a network of distribution pipelines and an LNG plant in Nashville.
The deal reflects a long-term trend towards asset optimization by utility companies. Duke Energy intends to focus on more stable and regulated activities and allocate $800 million of the funds raised to repay debt obligations, maintain its capital structure and implement a five-year capital investment plan.
Spire is one of the largest American public gas companies with headquarters in St. Louis, Missouri. The Company, through its subsidiaries (Spire Missouri Inc., Spire Alabama Inc., Spire Gulf and Spire Missisippi), is engaged in the purchase, distribution and sale of natural gas.
Duke Energy is an electric power holding company serving 7.3 million consumers in six states in the Southeastern and Midwestern United States. The subsidiaries manage energy generating assets in North and Latin America. The headquarters is located in Charlotte, North Carolina.
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