NextEra Energy (NYSE: NEE) is making a big buyout, and investors appear to be skeptical.
NextEra’s stock is down by 5.4% at 11:20 a.m
ET, slicing $9.9 billion off the Florida Power & Light parent’s market value. The market’s lukewarm reaction The buyer’s price drop outweighed the target company’s gains today. Dominion Energy (NYSE: D) is up by 9.8%, adding $5.8 billion to its market cap.
In other words, NextEra’s $66.8 billion Dominion deal reduced the total market value of the two companies by $5.0 billion, or 2% That’s not exactly a ringing endorsement from Wall Street as a whole. Why NextEra wants Dominion Energy NextEra expects the deal to close in 12 to 18 months, pending shareholder votes and regulatory approvals from federal agencies and utility commissions in Virginia, North Carolina, and South Carolina. Dominion serves 3.6 million customers across those three states, making it a geographic complement to NextEra’s operations in Florida.