Black Hills and NorthWestern Energy Merge to Create Regional Utility Giant

Black Hills Corp and NorthWestern Energy Group announced a historic merger agreement to create a premier regional regulated electric and natural gas utility company. The all-stock, tax-free transaction values the new entity at an approximate enterprise value of $15.4 billion. The merger has been unanimously approved by the boards of both companies and aims to enhance customer service efficiency without major layoffs. The combined company will be headquartered in Rapid City, South Dakota, with Montana as its largest market. The transaction, which will serve around 2.1 million customers across eight states and operate extensive electric and gas infrastructure, is expected to close in 12 to 15 months pending regulatory approvals. Leadership will be a combination of executives from both companies, and a new name and ticker symbol will be announced before closing. Financial synergies from the merger include a doubling of the rate base to $11.4 billion and a long-term EPS growth target of 5% to 7%.