Dominion Resources Agrees To Buy Questar In $4.4 Billion Deal

Energy transportation company Dominion Resources Inc. said Monday it has agreed to buy natural-gas company Questar Corp. in an all-cash deal valued at $4.4 billion. Dominion will pay Questar shareholders $25 a share in cash, or a 30% premium over the average stock price of Questar's last 20 trading days ended Jan. 29, and assume its debt. Dominion said the combined company will serve about 2.5 million electric utility customers and 2.3 million gas utility customers in seven states. The deal is expected to close by year-end and to boost Dominion earnings. Separately, Dominion said it has committed about $1 billion to three solar generating facilities in Utah, backed by long-term power purchase agreements with local electric utilities. Dominion shares were not yet active in premarket trade, while Questar was indicating higher.