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In a deal that jolts the U.S. energy landscape, Black Hills Corp. and NorthWestern Energy Group Inc. announced Tuesday they will merge in an all-stock transaction carrying a combined enterprise value of $15.4 billion. The agreement, backed by powerhouse legal teams Faegre Drinker Biddle & Reath LLP and Morgan Lewis & Bockius LLP, aims to create what executives call a “premier regional regulated utility.”

The new entity will boast a pro forma market capitalization of $7.8 billion, instantly vaulting it into the upper ranks of mid-cap energy providers.

Serving Millions Across Eight States

Once finalized, the combined company will deliver electricity to nearly 700,000 customers and natural gas to 1.4 million more, spanning Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. In total, 2.1 million customers will fall under the new utility’s umbrella.

“This merger brings together two highly complementary businesses,” said Linn Evans, president and CEO of Black Hills. “It positions us with the scale, financial muscle, and operational reach to deliver reliable service while fueling the investments demanded by today’s energy transition.”

Merger Mechanics: Who Gets What

Under the deal, NorthWestern shareholders will receive 0.98 Black Hills shares for each of their own, giving them 44% ownership of the combined business. Black Hills shareholders will retain a 56% stake.

Headquarters will remain in Rapid City, South Dakota, with a consolidated management team:

• Brian Bird (NorthWestern CEO) → Chief Executive Officer of the merged company

• Marne Jones (Black Hills SVP & Chief Utility Officer) → Chief Operating Officer

• Crystal Lail (NorthWestern CFO) → Chief Financial Officer

The board will expand to 11 members, six from Black Hills and five from NorthWestern.

Building a Stronger Grid for the Future

Executives on both sides say the merger will unlock synergies through shared systems, streamlined operations, and capital strength to expand energy infrastructure.

“Our merger with Black Hills will create a more resilient platform, enabling us to accelerate grid modernization and support customers through the rapid transformation of the energy sector,” said Brian Bird.

What Comes Next

The merger is expected to close within 12 to 15 months, pending regulatory approvals, including scrutiny from state commissions and the Federal Energy Regulatory Commission. A new name and ticker symbol will be announced before the closing.

The deal signals one of the most significant moves in the utility sector in recent years, as companies scramble to meet surging demand, modernize aging infrastructure, and pivot toward a cleaner, more sustainable energy mix.