AGL Resources to buy Nicor for $2.4 billion

AGL Resources will buy Nicor Inc for about $2.4 billion in cash and stock to expand its natural gas distribution business in the United States.                                           

Under the deal, Nicor shareholders will receive about $53 a share, 13% more than the stock's Monday close of $46.76 on the New York Stock Exchange.                                           

The deal is expected to be neutral to AGL Resources' earnings in the first full year following the close and add to earning thereafter, the companies said in a statement.       

After the completion of the deal, expected in the second half of 2011, AGL Resources shareholders will own about 67% of the combined company.                                           

Goldman Sachs & Co is acting the financial adviser for AGL Resources while JP Morgan is advising Nicor.                                           

AGL Resources' shares closed at $37.13 on Monday on the New York Stock Exchange.