AltaGas buying WGL

Photo: Contributed

AltaGas Ltd. is buying WGL Holdings Inc. for $6 billion in the latest Canadian blockbuster takeover of a U.S. energy company.

"We are fortunate to be buying a storied company with nearly 170 years of history, which in many ways is nearly the mirrored image of AltaGas," said company chief executive David Harris on an analyst call Wednesday.

Harris said the deal would allow Calgary-based AltaGas to expand its energy infrastructure portfolio in North America, particularly in the prolific Marcellus shale formation in northeastern U.S. as well as in clean power.

"This transaction is highly transformative for our company by increasing both our scale and breadth of quality assets, while maintaining our corporate DNA," said Harris.

Washington, D.C.-based WGL Holdings was created in 1848 as the Washington Gas Light Company and is now the parent company of natural-gas utility Washington Gas, which supplies the U.S. capital region.

WGL also owns extensive pipeline and energy storage assets, as well as wind and solar projects that would match well with AltaGas's own hydro, battery storage, and other renewable assets.

"The combined company will be a leader in the advanced energy economy," said John O'Brien, president of AltaGas Services in the U.S., in a media conference call.

Under the deal, WGL Holdings will keep its U.S. office and staff and AltaGas will relocate the headquarters of its U.S. power business to WGL's service region.

The company says the transaction, which will include $2.4 billion of debt on top of the purchase price, should close by mid 2018.