Duke Energy has announced a definitive agreement with Brookfield, under which Brookfield will acquire a 19.7% indirect equity interest in Duke Energy Florida for $6 billion. The investment is part of Brookfield’s Super-Core Infrastructure strategy and represents an all-cash transaction.
Brookfield, which manages over $200 billion in assets across several sectors, will invest in Florida Progress, the owner of Duke Energy Florida. The investment will be made in phases: $2.8 billion at the first closing expected in early 2026, another $200 million by the end of 2026, $2 billion in 2027, and the remaining $1 billion in 2028. Brookfield also has the option to fund the entire amount sooner.
Duke Energy plans to use $2 billion from this transaction to support its increased five-year capital plan, now totaling $87 billion, and allocate $4 billion to reduce holding company debt. This increase brings total planned investment in Florida to more than $16 billion through 2029. The expanded capital plan focuses on grid modernization and generation capacity enhancements as demand grows rapidly across central and western Florida.
“For more than a century, we’ve had the privilege of serving extraordinary Florida communities, which are now some of the most dynamic and fastest growing in the nation,” said Harry Sideris, president and chief executive officer. “We’re pleased to have Brookfield, a highly regarded infrastructure investor, as a long-term partner in Duke Energy Florida. This significant transaction at a compelling valuation best positions Duke Energy to unlock additional capital investments in Duke Energy Florida during this unprecedented growth period. It also materially strengthens Duke Energy’s overall credit profile, which in turn enables us to invest in our energy modernization plans across our entire footprint – all while helping keep prices as low as possible for our customers.”
“We are delighted to partner with Duke Energy in a critical business and premier regulated utility like Duke Energy Florida through Brookfield’s Super-Core Infrastructure strategy. We look forward to supporting the continued growth of Duke Energy Florida’s regulated asset base and, accordingly, ensuring excellent service delivery for its customers,” said Sam Pollock, chief executive officer of Brookfield’s infrastructure group. “This transaction underscores our patient strategy of partnering with leading corporates and investing in essential infrastructure assets that underpin economic growth, and that generate stable long-term cash flows across market cycles.”
Duke Energy will remain the majority owner with an 80.3% stake and continue operating Duke Energy Florida without changes to its workforce or leadership team.
“Duke Energy’s commitment to our customers and communities is unwavering, driving us to continuously find innovative ways to meet the moment for our customers. This exciting partnership allows us to do just that,” said Melissa Seixas, Duke Energy Florida state president. “This partnership will create value for all of our communities as we invest in generation, transmission and distribution enhancements that increase reliability, maintain affordability and support future economic development in our state.”
The transaction is subject to regulatory approvals from bodies including the Federal Energy Regulatory Commission and review by the Committee on Foreign Investment in the United States.
Duke Energy serves approximately 8.6 million electric customers across six states including Ohio (https://www.duke-energy.com/our-company/about-us), making it one of America’s largest energy holding companies.
Brookfield Asset Management is headquartered in New York with over $1 trillion under management globally (https://www.brookfield.com/about-us).
JP Morgan Securities LLC is acting as financial advisor for Duke Energy; Skadden, Arps, Slate, Meagher & Flom LLP is legal advisor. RBC Capital Markets LLC advises Brookfield financially; Kirkland & Ellis LLP serves as legal advisor.
Further information about both companies can be found at their respective websites: duke-energy.com (https://www.duke-energy.com/) and brookfield.com (https://www.brookfield.com/).
