Southern Company to Acquire AGL Resources in $12 Billion Merger

The Southern Company and AGL Resources today announced that the boards of directors of both companies have approved a definitive merger agreement to create America's leading U.S. electric and gas utility company. Pursuant to the agreement, AGL Resources will become a new wholly owned subsidiary of Southern Company in a transaction with an enterprise value of approximately $12 billion, including a total equity value of approximately $8 billion.

(The Southern Company announced plans to acquire AGL Resources in a $12 billion transaction. Image courtesy AGL Resources and the Southern Company)

Under the terms of the agreement, AGL Resources' shareholders will be entitled to receive $66 in cash for each share of AGL Resources common stock.

Officials from both companies say when completed, the Southern Company/AGL Resources merger will better position them to provide necessary natural gas infrastructure to meet customers' growing energy needs, and will create the second-largest utility company in the U.S. by customer base with:

• Eleven regulated electric and natural gas distribution companies providing service to approximately nine million customers with a projected regulated rate base of approximately $50 billion;
• Operations of nearly 200,000 miles of electric transmission and distribution lines and more than 80,000 miles of gas pipelines; and
• Generating capacity of approximately 46,000 megawatts.

"As America's leader in developing the full portfolio of energy resource s, we believe the addition of AGL Resources to our business will better position Southern Company to play offense in supporting America's energy future through additional natural gas infrastructure," said Southern Company Chairman, President and CEO Thomas A. Fanning.

"We've found a strong partner in Southern Company with its complementary businesses, excellent reputation and shared values," said AGL Resources Chairman and CEO John W. Somerhalder, II. "They have committed to continuing our tradition of community and philanthropic support and exceptional service to customers. We look forward to working with Southern Company to complete the transaction as expeditiously as possible and ensure a smooth transition."

AGL Resources will continue to maintain its own management team and board of directors after the merger is completed. In addition, AGL Resources will continue to maintain its own corporate headquarters in Atlanta.

Customers will continue to be served by their current gas and electric utility companies.