Utilities Announce Blockbuster Merger for Montana Utilities

In a merger worth billions of dollars, Northwestern Energy Group and Black Hills Corp are announcing a deal to join in an all-stock, tax-free deal that could reshape utility service across the region, including Montana

Leaders of the two companies say the deal has been unanimously approved by each company's board of directors, and will "create a premier regional regulated electric and natural gas utility company."

The new operation would have a "pro forma" market capitalization of approximately $7.8 billion, with a combined enterprise value of $15.4 billion, based on each company's stock price on Monday.

"The combined company will have greater scale and financial strength to consistently deliver for customers across our service territories and invest at the pace and scale that today’s energy transformation demands" -Black Hills Corp. President and CEO, Linn Evans

 

Together, we will be better positioned to meet rising demand, accelerate investment in energy and grid infrastructure, and support customers and communities through a rapidly evolving energy landscape" -NorthWestern Energy President and CEO, Brian Bird

 

Move impacts more than Montana

The combined company has a multi-state footprint, serving over 2 million customers across 8 states. That includes not only Montana, South Dakota, and Wyoming, but also Arkansas, Colorado, Iowa, Kansas, and Nebraska.

The infrastructure would involve 38,000 miles of electric lines and 2.9 gigawatts of power generation capacity, ranging from hydro to thermal and wind energy. In addition, the natural gas side would serve about 1.4 million customers and 59-thousand miles of gas lines.

RELATED: Montana Power Rates Increase, But Less Than Expected

Future investment

Officials of both companies are saying the merger will help with investments in future infrastructure, including more "clean energy" projects as well as new electric and gas services. And they say that will help meet rising energy demand, as well as control customer rates.

     The future will also include a new name, yet to be announced.

Approval will take over a year

It's expected to take 12 to 15 months for the merger to be reviewed and clear all the regulatory and financial milestones.