– Dominion Energy said on Tuesday it has agreed to sell Questar Pipelines to Southwest Gas Holdings Inc in a deal valued at $1.975 billion.
For Southwest Gas, the acquisition would mark a northward expansion of its natural gas operations and boost its regulated business.
The deal, which is expected to close in the fourth quarter, comes after activist investor Carl Icahn sent a letter to Southwest Gas on Tuesday, urging the company to abandon the acquisition and instead focus on improving its share price
Questar Pipelines is an interstate natural gas pipeline company that provides transportation and underground storage services in Utah, Wyoming and Colorado. It also owns the Clay Basin storage facility, the largest underground storage reservoir in the Rocky Mountains, according to the company’s website.
Southwest Gas provides natural gas service to more than two million residential, commercial, and industrial customers in most of Arizona and Nevada, and parts of northeastern and southeastern California, according to the company’s website.
Reuters on Sunday exclusively reported that Southwest Gas was in advanced talks to acquire Questar, citing people familiar with the matter.