New England-Canada Business Council Launches Steve Leahy Energy & Innovation Collaboration Award to Recognize Outstanding Cross-Border Partnerships

The New England-Canada Business Council has launched the Steve Leahy Energy & Innovation Collaboration Award to recognize outstanding cross-border partnerships in the energy sector. The award will honor initiatives that demonstrate innovation, environmental and economic impact, stakeholder collaboration, and long-term sustainability. Nominations are due by September 15, 2025, and winners will be announced in mid-October.

Black Hills Energy and NorthWestern Energy have announced a definitive agreement to combine in an all-stock, tax-free merger, creating a premier regional regulated electric and natural gas utility company. The merger, expected to close in 12 to 15 months, aims to leverage the strengths of both companies to drive long-term value for customers, employees, shareholders, and communities.

The combined company will have a pro forma market capitalization of approximately $7.8 billion and a combined enterprise value of $15.4 billion. Black Hills Corp. President and CEO Linn Evans expressed excitement about the merger, stating, "Our future success will be driven equally by the people, assets, and capabilities of both organizations." NorthWestern Energy President and CEO Brian Bird echoed this sentiment, noting that the merger will create a larger, more resilient platform and better position the company to meet rising demand and support customers through a rapidly evolving energy landscape.

Under the terms of the agreement, NorthWestern shareholders will receive a fixed exchange ratio of 0.98 shares of Black Hills for each share of NorthWestern they own at the close of the transaction. This implies an approximately 4% premium based on the volume weighted average price of each company’s common stock since discussions began in March 2025. Black Hills shareholders will continue to hold the same number of shares of the combined company that they hold of Black Hills immediately prior to the closing of the transaction.

The combined company will serve approximately 2.1 million customers across eight contiguous states, with electric utility serving 700,000 customers and natural gas utility serving 1.4 million customers. The merger will double the size of each company’s rate base to a total of approximately $11.4 billion, with electric and natural gas rate bases of approximately $7.0 billion and $4.4 billion, respectively. Combined, the companies’ current investment plans from 2025 to 2029 exceed $7 billion, focusing on building new electric and natural gas critical infrastructure to meet rising energy demand and advancing energy resilience.

The combined company supports a long-term target EPS growth rate of 5% to 7%, greater than both Black Hills and NorthWestern on a standalone basis. The merger is expected to be accretive to each company’s EPS in the first year following the close of the transaction. Both companies expect to maintain their existing dividend policies until the merger transaction is completed, with the combined company expected to establish a dividend policy reflecting a prudent balance across return of capital, investing in growth, and balance sheet strength upon closing of the transaction.

The merger will deliver benefits to all stakeholders, including customers, employees, and communities. The combined company will extend shared best practices across its service territory, benefiting from process improvements, shared systems, and coordinated operations. This will support continued investment in safety, reliability, and customer service, delivering long-term value for customers. The combined company will also be an employer of choice, with a highly skilled workforce, and will continue to be an active part of the communities it serves, supporting civic and philanthropic organizations.

The combined company will be headquartered in Rapid City, South Dakota, with a new name and ticker symbol to be determined prior to the close of the transaction. The operating companies are expected to maintain their current names at transaction closing. The transaction is subject to customary closing conditions, clearance under the Hart-Scott Rodino Act, approval from each company’s shareholders, and regulatory approvals.

References:
[1] https://www.centralnebraskatoday.com/2025/08/19/303374/