NextEra Energy Inc. (NYSE: NEE) and Dominion Energy Inc. (NYSE: D) announced they have entered into a definitive agreement to combine in an all-stock transaction, according to a press release statement.

Under the agreement, Dominion Energy shareholders will receive 0.8138 shares of NextEra Energy for each share of Dominion Energy they own at closing. NextEra Energy and Dominion Energy shareholders will own approximately 74.5% and 25.5% of the combined company, respectively.

The combined company will serve approximately 10 million utility customer accounts across Florida, Virginia, North Carolina and South Carolina, and will own 110 gigawatts of generation capacity. The transaction is structured to be tax-free to shareholders and is expected to be immediately accretive to adjusted earnings per share at closing.

As part of the deal, the companies are proposing $2.25 billion in bill credits for Dominion Energy's customers in Virginia, North Carolina and South Carolina, spread over two years following the transaction's completion. Additionally, Dominion Energy shareholders will receive a one-time cash payment of $360 million at closing.

John Ketchum will serve as chairman and CEO of the combined company, while Robert Blue will serve as president and CEO of regulated utilities and as a board member. The combined company will operate under the NextEra Energy name and trade on the New York Stock Exchange under the ticker symbol NEE.

The companies plan to maintain dual headquarters in Juno Beach, Florida, and Richmond, Virginia, with an operational headquarters in Cayce, South Carolina. Dominion Energy's utility companies will continue operating under their current names.

The transaction requires approval from shareholders of both companies, along with regulatory approvals from the Federal Energy Regulatory Commission, Nuclear Regulatory Commission, and state utility commissions in Virginia, North Carolina and South Carolina. The companies expect the transaction to close within 12 to 18 months, subject to these approvals and other customary closing conditions.