GREAT FALLS — Black Hills Corp. and NorthWestern Energy announced Tuesday an agreement to merge in an all-stock, tax-free transaction that will create a regional regulated electric and natural gas utility company.
The boards of directors of both companies unanimously approved the merger.
The new utility will serve around 2.1 million customers across eight contiguous states — Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming — and will operate roughly 38,000 miles of electric lines, 59,000 miles of natural gas pipelines, and own 2.9 gigawatts of generation capacity powered by thermal, hydro, and wind.
The 11-member board of directors will include six directors from Black Hills and five from NorthWestern, including Bird and Linda Sullivan, current chair of the NorthWestern board. Steven Mills, chair of the Black Hills board, will chair the combined company’s board.
The merged utility will be headquartered in Rapid City, South Dakota, and will retain a strong operational presence throughout its service territory. A new name and ticker symbol will be announced before closing. For now, the companies will continue operating under the Black Hills Energy and NorthWestern Energy brands.
The merger is expected to close in 12 to 15 months, pending:
- Shareholder approvals from both companies,
- Regulatory approvals from commissions in Montana, Nebraska, and South Dakota (and Arkansas if required),
- Federal Energy Regulatory Commission approval, and
- Clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
