AltaGas (OTCPK:ATGFF) confirms it is in discussions regarding a potential transaction, but does not name the other party, after WSJreported it is in merger talks with WGL Holdings (NYSE:WGL) in a deal worth $5B-$6B.
WSJ said a deal could be announced this month but that regulatory or political pushback could be potential obstacles to any tie-up between WGL and AltaGas; Exelon spent nearly two years seeking approval from D.C. regulators for its purchase of Pepco Holdings.
Bloomberg reported in November that WGL was considering a sale after fielding interest from Iberdrola, but those talks are said to have ended.
WGL has held preliminary talks with Iberdrola and is working with financial advisers, but may also decide to remain independent, according to the report.
WGL subsidiary Washington Gas has more than 1.1M customers in Washington D.C., Maryland and Virginia; the company’s other divisions include a gas storage business, a gas and electricity marketing arm, and a natural gas pipeline unit.
Williams Partners (WPZ +1.4%) and its co-developers in the $925M Constitution natural gas pipeline are favored to prevail in at least one of two legal challenges to New York’s opposition to the project, Bloomberg reports.
The developers argue that the project should go forward and that requiring other state permits as a condition precedent to construction is an overreach.
The FERC last month approved the 124-mile pipeline from the Marcellus shale region in Pennsylvania to markets in New England and New York, and granted the developers a two-year extension to December 2018.
Other partners in the Constitution pipeline include Cabot Oil & Gas (COG +3.3%), Piedmont Natural Gas (PNY +0.1%) and WGL Holdings (WGL -0.8%).
Top 10 Holdings as of 3/31/2016: Black Hills Corp (BKH): 2.43%, South Jersey Industries Inc (SJI): 2.18%, SJW Corp (SJW): 2.07%, New Jersey Resources Corp (NJR): 2.06%, MGE Energy Inc (MGEE): 2.04%, Cracker Barrel Old Country Store Inc (CBRL): 2.03%, WGL Holdings Inc (WGL): 2.01%, Clarcor Inc (CLC): 1.99%, California Water Service Group (CWT): 1.98%, Avista Corp (AVA): 1.98%