Semco Energy and Just Energy to merge: Sources
The semco energy and just energy companies, which are the two largest suppliers of natural gas in the U.S., have agreed to merge, according to sources familiar with the talks.
The deal, expected to close by the end of the year, will bring the combined companies closer to the 1.4 billion customers they already provide.
It will also provide Semco with the infrastructure needed to continue to expand into other gas markets.
The news comes as the U, U.K. and Germany prepare to meet in London this week to discuss a gas deal, which could be worth $10 billion or more, according, according.
The semco deal would not have been possible without the support of the gas companies, said one of the sources familiar.
Semco’s shares are up more than 8 percent in after-hours trading, while Just Energy shares have jumped 6.5 percent.
Semico shares are down 4.7 percent this year.
Semco, which is based in the Houston area, and Just are the world’s largest natural gas producers, producing about 80 billion cubic feet of gas annually.
The two companies each offer different strategies for extracting natural gas, but both rely on a combination of drilling and fracking.
Semeco said in a statement that it is pleased to partner with Just Energy and Semco on the merger.
The companies’ common interest is to further expand the supply of natural and low-carbon gas, the statement said.