Shortly after announcing AltaGas will proceed with building a $500 million propane export terminal on Ridley Island, the company has confirmed a Wall Street Journal report that they are in merger negotiations.
While the Calgary-based company did not name who they were in negotiation with, citing unnamed sources, the Wall Street Journal reported that AltaGas is looking to merge with WGL Holdings Inc. in a deal worth US$5 billion to $6 billion.
"At the request of IIROC, (Investment Industry Regulatory Organization of Canada), on behalf of the Toronto Stock Exchange, the following statement in response to a media report suggesting that it is in talks with and pursuing a potential transaction with a third party:
"While we are in discussions regarding a potential transaction with a third party, no agreement has been reached and there is no assurance that these discussions will continue or that any transaction will be agreed upon. Until such time as it is appropriate to make a public announcement on any potential transaction, should one occur, AltaGas will not comment further on this matter. Any announcement regarding a potential transaction will be disclosed in accordance with applicable legal and regulatory requirements," AltaGas stated in a press release.
WGL Holdings, Inc.is a natural gas company serving the Washington, D.C. metropolitan region serving more than one million customers in the District of Columbia, Maryland and Virginia.
Trading on AltaGas stock was halted earlier today closing down 1.3 per cent to $33.65. WGL Holdings, however, closed up 5.91 per cent at US$80.26. AltaGas has a market value of $5.5billion while WGL Holdings market value is approximately $4 Billion U.S.