DUK - Dominion/Duke Energy NextEra Energy possible M&A names this year - report

A potential Dominion Energy ( NYSE: D ) combination with Duke Energy ( NYSE: DUK ) is an idea to consider in 2023, according to an industry expert.

There would be "tremendous benefits" with a combination of Dominion ( D ) and ( DUK ) and a deal would make a lot of sense, Roger Conrad of Conrad's Utility Investor told CTFN in an interview published in recent days. The utilities operate in the same space and they have similar goals as far as wind, solar and nuclear.

Conrad cautioned that investors may have issues with a transaction due to the current state of the financing markets as well as potential antitrust issues and through FERC with the Algonquin/Kentucky Power ruling.

The utility expert also highlighted NextEra Energy ( NYSE: NEE ) as a name often mentioned when M&A is talked about. Conrad believes NextEra is likely focused more on acquiring electric co-ops in Florida. He said he wouldn't be surprised if the utility may bid for something as the company wants to increase the regulated part of its business.

As far as announced deals, Conrad expects that South Jersey Industries ( NYSE: SJI ) sale to Infrastructure Investments Fund will very likely close in Q1 as it awaits approval from New Jersey's utility regulator.

CTFN last month reported that report that parties are said to be close to agreeing to a settlement with the New Jersey utilities regulator that needs to approve the company's sale to Infrastructure Investments Fund.

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