Dominion Resources to Buy Louis Dreyfus

Utility holding company Dominion Resources Inc. said it will acquire Louis Dreyfus Natural Gas Corp. for nearly $1.8 billion in cash and stock to expand its energy trading business.

The purchase of Louis Dreyfus, an exploration and production company, would increase Richmond, Va.-based Dominion’s natural-gas reserves by 60% and help double its energy trading and sales volumes over the next three years.

Dominion also would assume $505 million in debt in the deal, the latest in a string of energy industry takeovers this year.

Shares of Dominion, whose utility business serves more than 4 million customers on the East Coast and in the Midwest, fell $2.37 to close at $60.26 on the New York Stock Exchange. Oklahoma City-based Louis Dreyfus shares jumped $5.72 to $38.68, also on the NYSE.