NextEra Energy (NYSE: NEE) and Dominion Energy (NYSE: D) announced on Monday a definitive all-stock merger agreement that will combine the two companies into what they describe as the world’s largest regulated electric utility Business by market capitalisation, with an enterprise value of approximately $420 billion.
Under the terms of the deal, each Dominion Energy shareholder will receive 0.8138 shares of NextEra Energy for every Dominion share they own at the time the transaction closes.
The split will leave NextEra shareholders owning approximately 74.5% of the combined business and Dominion holders with the remaining 25.5%. The transaction is structured as a full stock-for-stock exchange and is expected to be tax-free for shareholders on both sides.
The combined entity will serve approximately 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina, and will own 110 gigawatts of generation capacity across a diverse energy mix. It will be more than 80% regulated, positioning it as a heavily insulated revenue operation in an environment where power demand from data centres and AI infrastructure is growing at a pace that has caught many utilities underestimated.
The transaction requires approval from the shareholders of both companies, regulatory sign-off from the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and multiple state utility commissions in Virginia, North Carolina and South Carolina. The boards of both companies have unanimously approved the deal. The companies expect the transaction to close in the second half of 2027, a timeline that reflects the depth of regulatory scrutiny any merger of this scale will face.
NextEra chief executive John Ketchum will lead the combined company. Dominion’s Bob Blue will take responsibility for regulated utilities across both organisations and will join the board of directors. The operational headquarters of Dominion Energy South Carolina will remain in Cayce.
As a gesture toward regulatory acceptance, the combined company is proposing $2.25 billion in bill credits for Dominion Energy customers in Virginia, North Carolina and South Carolina, spread over two years following the close of the transaction. That sum is a meaningful concession designed to demonstrate that scale benefits will flow to customers rather than shareholders alone.
The strategic rationale is built around the accelerating demand for electricity from technology infrastructure. Both companies have argued that meeting this moment requires scale that neither can achieve independently. Together they become the largest generator in the United States, the number one provider of renewables and battery storage in the world, and the second-largest nuclear operator domestically.
The energy sector has been under pressure this year, partly because of rising Treasury yields that reduce the relative attractiveness of utility dividends and partly because Iran war-related oil price surges have redirected investor attention toward energy producers rather than distributors. A deal of this scale, structured around clean energy infrastructure and regulated cash flows, is a clear strategic bet on the power demand story outlasting current geopolitical disruption.