Black Hills, NorthWestern merge to form $15.4 billion multi-state electric, gas utility

(UI) — Black Hills Corp. and NorthWestern Energy have agreed to merge in an all-stock transaction valued at $15.4 billion, creating one of the largest regulated electric and natural gas utilities in the region.

The combined company will serve about 2.1 million customers across eight states — Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming — with operations spanning 38,000 miles of electric lines and 59,000 miles of natural gas pipelines. It will also operate 2.9 GW of power generation fueled by a mix of thermal, hydro, and wind.

Black Hills shareholders will own roughly 56% of the new company, while NorthWestern shareholders will hold 44%. The deal is expected to close within 12 to 15 months, pending regulatory and shareholder approvals.

“This merger will accelerate our ability to deliver long-term value for customers, employees, shareholders, and communities,” said Black Hills CEO Linn Evans. “The combined company will have greater scale and financial strength to invest at the pace and scale that today’s energy transformation demands.”

NorthWestern CEO Brian Bird will lead the merged utility. “Together, we will be better positioned to meet rising demand, accelerate investment in grid infrastructure, and support customers through a rapidly evolving energy landscape,” Bird said.

The merger doubles the companies’ combined rate base to about $11.4 billion, with more than $7 billion in investment already planned through 2029. Both companies expect the deal to be accretive to earnings per share in the first year after closing.

The headquarters will be located in Rapid City, South Dakota, with operations spread across the service area. A new name and ticker symbol will be determined prior to completion of the transaction.

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