Southern buying AGL Resources for about $7.93 billion

FILE - In this April 28, 2010, file photo, steam rises from the cooling towers of nuclear reactors at Georgia Power's Plant Vogtle, in Waynesboro, Ga. Southern Co. is buying AGL Resources Inc. for approximately $7.93 billion, the company announced, Monday, Aug. 24, 2015, which would create the second-biggest utility company in the United States, by customer base. (AP Photo/Mary Ann Chastain, File) FILE - In this April 28, 2010, file photo, steam rises from the cooling towers of nuclear reactors at Georgia Power's Plant Vogtle, in Waynesboro, Ga. Southern Co. is buying AGL Resources Inc. for approximately $7.93 billion, the company announced, Monday, Aug. 24, 2015, which would create the second-biggest utility company in the United States, by customer base. (AP Photo/Mary Ann Chastain, File)

By Associated Press August 24, 2015 1 min read

ATLANTA (AP) – Southern Co. is buying AGL Resources Inc. for approximately $7.93 billion, which would create the second-biggest utility company in the U.S. by customer base.

The combined business will include 11 regulated electric and natural gas distribution companies, serving approximately 9 million customers in nine states. Customers will continue to be served by their current gas and electric utility companies.

Atlanta-based Southern will pay $66 in cash for each AGL share, a 38 percent premium to the company’s Friday closing price of $47.86.

Southern and AGL put the deal’s enterprise value at about $12 billion. The enterprise value figure typically includes assumed debt.

AGL, which will maintain its headquarters in Atlanta, will become a subsidiary of Southern.