Southern to buy AGL Resources for $12b

Southern Co, the parent company of Mississippi Power, reached a deal to purchase natural gas company AGO Resources for about $7.93 billion, according to multiple reports. The existing shareholders of AGL Resources will receive $66 for every common share of the company, a premium of 38% on the August 21 closing price of AGL Resources.

Customers of the Southern Company and AGL Resources will continue to be served in the same way after the deal is completed. Both companies’ boards of directors have approved the deal.

“For some time we have expressed our desire to explore opportunities to participate in natural gas infrastructure development”, said Southern Chief Executive Thomas Fanning in a news release.

The transaction is expected to add to Southern’s earnings per share in the first full year after the acquisition closes.

AGL Resources also is a backer of PennEast Pipeline Co. It would be the second-largest U.S. utility company by customer base.

About Southern CompanyWith more than 4.5 million customers and approximately 46,000 megawatts of generating capacity, Atlanta-based Southern Company (NYSE: SO) is the premier energy company serving the Southeast through its subsidiaries.

The company also has three natural gas storage businesses: Central Valley Gas Storage, Golden Triangle Storage and Jefferson Island Storage & Hub.

Citigroup Global Markets Inc is Southern Co’s financial adviser, while Jones Day, Gibson Dunn & Crutcher LLP and Troutman Sanders LLP are its legal counsel. Its Pivotal LNG unit provides wholesale liquefied natural gas (LNG) for transportation and other domestic uses.