Duke Energy has reached an agreement with Brookfield for the latter to acquire a 19.7% indirect equity interest in Duke Energy Florida (DEF) for $6 billion. The transaction, which will be made through Brookfield’s Super-Core Infrastructure strategy, aims to support Duke Energy Florida’s increased five-year capital plan and help meet rising energy demands in the state.
Brookfield, which manages over $200 billion in assets across various sectors including utilities and transport, will make its investment in phases. The first payment of $2.8 billion is expected at closing in early 2026, followed by $200 million later that year, $2 billion in 2027, and the remaining $1 billion in 2028. Brookfield may choose to complete the full investment sooner.
The deal is structured so that Duke Energy remains the majority owner and operator of DEF, retaining an 80.3% stake. There will be no changes to workforce or leadership as a result of this transaction.
Harry Sideris, president and chief executive officer of Duke Energy Florida, said: “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. 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.”
Sam Pollock, chief executive officer of Brookfield’s infrastructure group, commented: “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. 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.”
According to Melissa Seixas, state president of Duke Energy Florida: “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. 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 increased capital plan brings total planned investment by DEF in Florida to over $16 billion through 2029. These funds are intended for grid modernization projects and enhancements aimed at strengthening reliability amid rapid customer growth.
Duke Energy serves about 8.6 million electric customers across six states and operates approximately 55,100 megawatts of energy capacity nationwide. Its natural gas utilities reach about 1.7 million customers.
Completion of this transaction depends on regulatory approvals from agencies such as the Federal Energy Regulatory Commission and review by the Committee on Foreign Investment in the United States.
JP Morgan Securities LLC is advising Duke Energy financially; Skadden, Arps, Slate, Meagher & Flom LLP is legal advisor for Duke; RBC Capital Markets LLC is financial advisor for Brookfield; Kirkland & Ellis LLP is providing legal counsel for Brookfield.
More information about both companies can be found at their respective websites.
