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Black Hills and NorthWestern Energy to Merge in $15.4 Billion Deal

By  |  August 19, 2025

Black Hills Corp and NorthWestern Energy announced on Tuesday that they will merge in an all-stock transaction valued at $15.4 billion, creating a major regulated electric and natural gas utility designed to strengthen investment in U.S. grid infrastructure and address the nation’s surging energy demands.

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    The move comes as American utilities are scaling up rapidly to handle record power consumption, which has been fueled by the explosive growth of data centers supporting artificial intelligence and cryptocurrency operations, along with rising residential and commercial usage, according to Reuters.

    “The combined company will have greater scale and financial strength to consistently deliver for customers across our service territories and invest at the pace and scale that today’s energy transformation demands,” said Black Hills CEO Linn Evans. Evans is set to retire once the merger closes, which is anticipated in the fourth quarter of 2026.

    Per Reuters, the companies highlighted that the merger is expected to boost earnings per share in its first year and support long-term EPS growth of 5% to 7%. This outlook surpasses the 4% to 6% growth projections that each utility had forecast separately. In addition, the firms had already outlined $7.4 billion in capital investments through 2029 but said the tie-up would generate even greater opportunities.

    Under the deal’s terms, NorthWestern shareholders will receive 0.98 Black Hills shares for each of their own. That values NorthWestern at $59.14 per share, equating to an equity value of $3.6 billion, according to Reuters’ calculations. Following completion, Black Hills investors will hold approximately 56% of the merged entity, which will be headquartered in Rapid City, South Dakota, and led by current NorthWestern CEO Brian Bird.

    The announcement sparked a positive response in the market, with NorthWestern shares climbing 6.3% to $58.39 in early afternoon trading, while Black Hills rose 1.1%. Analysts also noted the benefits of the merger. Chris Ellinghaus of Siebert Williams Shank said the improved growth outlook should enhance the valuation of both companies, pointing to the strength of the combined balance sheet in financing new initiatives.

    Source: Reuters