AGL Resources to merge with Nicor

The deal, which would tuck Illinois' Nicor under AGL's wing, is valued at $3.1 billion. Combining the companies would vault AGL Resources of Atlanta into the Fortune 500, the companies said in a joint statement.

The companies said they have agreed to a stock and cash trade, giving Nicor shareholders $21.20 per share in cash and 0.8382 shares of the merged company, "which together represent a value of $53, based on the volume-weighted average price for AGL Resources common stock" over a 20-day trading average ending Dec. 1.

The companies said the merger would create a company with $5.1 billion in annual revenues, 4.5 million customers, plus 1 million retail customers in unregulated businesses.

The company would distribute "approximately 4.7 billion cubic feet of natural gas per day," the statement said.

In total, the company will have 31 billion cubic feet of storage and an expansion potential that could increase that to 40 billion cubic feet.

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