The Federal Trade Commission in the US has granted antitrust approval for Duke Energy’s previously proposed acquisition of natural gas distributor Piedmont Natural Gas for $4.9bn.
The latest approval clears a key condition that is required for completion of the transaction.
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Duke Energy said it has been granted early termination of the 30-day waiting period under the federal Hart-Scott-Rodino Antitrust Improvements Act with regard to the deal.
For the acquisition to complete, expiration or termination of the waiting period was required.
However, the deal still requires approval by the shareholders of Piedmont and the North Carolina Utilities Commission.
The two companies expect to close the transaction by 2016-end.
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By GlobalDataWhen the acquisition was announced in October 2015, Duke Energy president and CEO Lynn Good said: "This combination provides us with a growing natural gas platform, benefiting our customers, communities and investors."
Following the acquisition, Duke Energy will be able to increase its stake in the $5bn Atlantic Coast Pipeline to 50%.
Piedmont is also a key partner of the pipeline, which will link gas fields in West Virginia to Duke Energy’s service area in North Carolina, once completed.
Upon closing of the transaction, Duke Energy will also assume about $1.8bn in Piedmont existing net debt, which represents a total enterprise value of about $6.7bn.
Piedmont will retain its name and operate as a business unit of Duke Energy, while maintaining its headquarters in Southeast Charlotte.
Image: Duke Energy Center in Charlotte, North Carolina, US. Photo: © Duke Energy Corporation
