NextEra Energy (NEE) just agreed to one of the largest energy acquisitions since Exxon bought Mobil in 1998.
The market’s first reaction was not applause
Shares of the Florida utility giant fell sharply after it unveiled a roughly $67 billion all-stock deal to buy Virginia’s Dominion Energy (D) on May 18. The stock closed at $89.04 that day, down 4.63% from its prior close of $93.36. By Wednesday, May 20, NEE had clawed back some ground, trading near $90.63, but still down 2.92% from the $93.36 pre-acquisition announcement price.
Dominion shareholders had a very different Monday. Their stock jumped roughly 9% on the news. That split tells you something.