A Southern Co. subsidiary has sold several gas companies to South Jersey Industries for $1.7 billion.
Southern Co. Gas today announced the deal early Monday. They said the deal is expected to be complete by the third quarter of next year.
The company believes the sale will reduce costs, while adding to shareholder value, according to a statement by Thomas Fanning, chairman, president and CEO of Southern Co. "The transaction is beneficial to our company and aligns with our overall business strategy to drive growth and prosperity."
The transaction will be “seamless,” which is to say, that customers will not notice the change, Southern Co. said.
The companies being sold are Elizabethtown Gas and Elkton Gas.
The transaction will still need to be approved by New Jersey regulators and to meet federal guidelines as well, officials said.
Southern Co. Gas serves approximately 4.6 million natural gas customers through distribution companies and more than 1 million retail customers through its companies that market natural gas and related home services.
Atlanta-based Southern Co. last year had revenues of $19.9 billion. It owns Georgia Power.
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