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Dominion Energy sues federal government over offshore wind farm halt

SUMMARY: 

  • ‘s $11.2 billion CVOW project off coast of is one of five East Coast wind projects impacted by federal stop-work order.
  • Richmond-based utility is suing for injunction to be able to continue construction.
  • Wind farm has been timed to be in operation by late 2026, powering 660,000 homes.
  • Hearing is set in federal court in Norfolk on Dec. 29

Updated Jan. 2

Dominion Energy has sued the federal and the U.S. Department of the Interior, seeking to continue work on its project after the federal government issued stop-work orders on five wind farms under construction.

The was filed on Tuesday, one day after the Trump administration suspended the lease of Dominion’s project.

The Richmond-based Fortune 500 utility seeks a preliminary injunction so it can continue work on the , which is expected to be complete in late 2026. The complaint filed in the U.S. District Court for the Eastern District of Virginia calls the BOEM’s order “arbitrary and capricious,” as well as “procedurally deficient.”

The court set a Dec. 29 hearing on the motion in Norfolk, according to a Christmas Eve order, but in an order Dec. 28, the hearing was reset for Jan. 16.

In the complaint, Dominion set the total cost of the project at $11.2 billion, an increase from $10.9 billion, cited earlier this year after the utility anticipated would raise CVOW’s cost. The 2.6-gigawatt project is expected to power 660,000 homes.

Dominion and OSW Project, a limited liability corporation, are suing Secretary of the Interior Douglas Burgum and BOEM’s acting director, Matthew Giacona, along with the departments they head. CVOW, an offshore wind project under construction 27 miles off the coast of Virginia Beach, is one of five offshore wind leases suspended on the East Coast, including Revolution Wind off the coast of Rhode Island and Connecticut, Vineyard Wind 1 off Massachusetts, and Sunrise Wind and Empire Wind off New York. According to Dominion, the suspension is for 90 days.

Burgum’s statement Tuesday said that the project leases were being suspended after the Pentagon raised concerns that the movement of huge turbine blades and the highly reflective towers cause radar interference. The resulting “clutter” obscures legitimate moving targets and generates false targets in the vicinity of the wind projects, it said.

The pause will give relevant federal agencies “time to work with leaseholders and state partners to assess the possibility of mitigating the national security risks posed by these projects,” the department said in a news release.

However, Dominion argues in the lawsuit that the order is “the latest in a series of irrational agency actions attacking offshore wind and then doubling down when those actions are found unlawful.”

has long excoriated projects, calling them ugly, costly and inefficient. Since taking office in January, his administration has placed stops on offshore wind projects approved under the Biden administration and already under construction, including Revolution Wind and Empire Wind.

Dominion argues that the federal order is causing “serious, irreparable harm to [Dominion Energy Virginia] and its customers,” the lawsuit says. “All of CVOW’s offshore wind turbine and substation foundations are already in place, construction of other offshore and onshore components is ongoing or complete. There is a strict timeline for remaining CVOW construction activities, and any delay will affect the availability of specialized vessels, equipment and labor.”

The delay caused by the BOEM order, Dominion adds in the complaint, “is imposing extensive costs on [Dominion] and on the electric service customers who will benefit from CVOW.”

Dominion issued a statement this week about the legal action.

“If granted by the court, this will allow the project to resume work,” the statement says. “At the same time, we will work to seek resolution through cooperation with the agencies and the White House, with a focus on achieving a durable solution. CVOW is essential to meeting our customers’ needs. Delaying the project will lead to increased costs for customers and threaten long-term grid reliability. Given the project’s critical importance, we have a responsibility to pursue every available avenue to deliver the project as quickly and at the lowest cost possible on behalf of our customers and the stability of the overall grid.”

The Department of the Interior and the Bureau of Ocean Energy Management did not respond immediately to requests for comment Friday.

Reuters contributed to this report. 

Warner Bros bidding war and red hot M&A market has dealmakers working through holidays

Summary

  • Global deals hit $463.6 billion in December, up 30% from last year
  • Major transactions include IBM’s $11B Confluent deal and a $6B Trump Media merger
  • Paramount, Skydance and Netflix battle over Warner Bros Discovery
  • Bankers expect a strong deal pipeline heading into early 2026

NEW YORK, Dec 22 (Reuters) – A flurry of multi-billion-dollar deals has bankers and advisers from to Canary Wharf packing laptops next to presents and warning family and friends their holiday vacations over the next two weeks will be cut short.

There have been $463.6 billion in announced this month, 30% more than last year, including Trump Media & Technology Group’s $6 billion merger with nuclear fusion firm TAE Technologies, IBM’s $11 billion purchase of data infrastructure company Confluent and a bidding war between Paramount Skydance and Netflix for Warner Bros Discovery, according to data compiled by Dealogic.

“This is the hunt and the finish, and we all enjoy it,” said Charles Ruck, a partner at Latham & Watkins, which is advising Paramount on its bid for Warner Bros. “I’m not telling anybody not to travel. I’m telling them, wherever you are, I might need some of your time.”

Just this weekend, a group of firms led by Permira and Warburg Pincus inked a deal to buy investment and accounting software maker Clearwater Analytics Holdings for about $8.4 billion, including debt.

“It’s busy, and it’s really broad-based … we’re seeing a fair amount of activity across most of our industry sectors,” said John Collins, global head of M&A at Morgan Stanley.

WARNER BROS BIDDING WAR

This holiday season is shaping up to be one of the most active in recent years, according to interviews with about a dozen bankers and legal advisers.

Investment bankers at Citigroup said last month was the busiest November in years. Dealmakers from New York to London and Hong Kong say they are trying to close numerous multi-billion-dollar deals before the ball drops in Times Square on New Year’s Eve. As the C-suite gets more aggressive, several big companies are looking to hire advisers before the end of the year to tee up big deals in 2026. Two dealmakers in London and New York say they plan to work through the holidays, while some are optimistic that they will take off Christmas Day and, fingers crossed, Christmas Eve too.

That may be more difficult for bankers, advisers and public relations professionals working on the Warner Bros deal. The bidding war keeps them close to their phones and laptops this holiday season, with some working through Christmas. On Monday, Paramount revised its $108.4 billion hostile bid, which is being jointly financed by RedBird Capital Partners, with an extended deadline of January 21.

“We’re going to be working through the holidays and into the first week of January to communicate the merits of our offer to shareholders,” RedBird founder and Chief Investment Officer Gerry Cardinale said on CNBC on Monday.

That is far from the only deal in town. Latham’s Ruck, who declined to discuss the Warner Bros talks, told Reuters last week the firm expected to announce at least four more deals in the next two weeks.

“Our team understands it without me saying it,” he said. “They recognize that this is a magic moment, that these magic moments don’t last forever, that we are on front-page, cutting-edge deals.”

This has turned out to be an extraordinary year for dealmakers after a trade war kicked off by U.S. derailed activity in the second quarter. Globally, surpassed $4.8 trillion as of last week, making it the second-best year on record after 2021, when near-zero interest rates and COVID stimulus drove M&A to over $6 trillion.

DEALS PIPELINE STRONG FOR EARLY 2026

At Sullivan & Cromwell, partner Frank Aquila plans to work through the holidays. The pipeline is “very strong” for the first half of next year, which he said could rival 2021.

“This will very much be a working holiday,” he said in an interview.

Guillermo Baygual, global co-head of M&A at Citigroup, said his team is “extremely busy. There’s a lot happening, both in the corporate and in the sponsor world.”

A lot of corporate clients are hiring advisers for “significant transactions across sectors,” he said.

Added Collins: “We went through a couple years where it just felt like management teams and boards were finding reasons to say no. We have seen a real shift in philosophy towards trying to find reasons to say yes.”

 

(Reporting by Dawn Kopecki in New York and Charlie Conchie and Anousha Sakoui in LondonEditing by Rod Nickel)

 

Dominion gas plant in Chesterfield on hold, while SCC considers petition

Dominion Energy’s proposed plant is now on hold, as the is reconsidering its final order approving the project.

In a Dec. 15 decision, the SCC issued a brief ruling that it will consider a petition from opponents of the (CERC) — , the NAACP and Mothers Out Front. This puts the project on hold for at least the time being, according to the ruling.

The petition raises multiple issues, including possible health impacts of air pollution, higher costs for customers if the plant is built, and “disregards substantial proof that new gas is not required to meet Virginians’ energy needs,” according to a statement from the groups’ legal counsel, Southern Environmental Law Center (SELC).

Meanwhile, on Dec. 19, the Virginia approved an air permit for the project, but this doesn’t override the SCC’s reconsideration.

In November, the SCC approved the $1.47 billion, 944-megawatt power plant’s certificate of public convenience and necessity, which Dominion applied for in March. Known as a peaker plant, the facility would provide at peak demand hours, according to the utility. It is projected to be in operation by June 1, 2029.

“There is little doubt that Dominion’s need for additional generation assets is urgent,” the SCC’s Nov. 25 opinion said. “The near-term reliability concerns motivating the CERC project … cannot be addressed by non-carbon-emitting resources.”

The project still could go forward, but the SCC’s new ruling, which follows the Dec. 15 submission of a petition for reconsideration, pauses the process. The three opposing groups and the SELC issued a statement, saying that they appreciate the SCC’s reconsideration.

“We hope that the commission will see and acknowledge the unfairness of continuing to force particular communities to bear the brunt of pollution from fossil fuel infrastructure,” SELC Senior Attorney Grayson Holmes said. “Since this is the first case assessing what constitutes a ‘threat to reliability,‘ sufficient to overcome the [Virginia] Clean Economy Act’s presumption against building new gas plants, we also hope the commission will recognize that permitting Dominion to claim this narrow exception on flimsy evidence sets a bad precedent — effectively suggesting that any future gas proposals could easily clear this hurdle, even if they are not the cleanest or most economic option.”

Dominion issued statements about the SCC’s latest decision and the DEQ’s approval.

“We stand behind the SCC’s approval of the project,” Dominion said. “It was approved after a year of exhaustive review, an extensive public hearing and participation by thousands of Virginians. The Chesterfield Energy Reliability Center will provide reliable power for hundreds of thousands of homes, businesses, schools and hospitals in Chesterfield and beyond. It’s an important part of Virginia’s all-of-the-above strategy to ensure our region has the reliable power we need to continue growing and thriving.

“We appreciate the DEQ’s thorough review and the strong public participation in the process. This is good news for our customers, Virginia’s economy and the reliability of the grid.”

Appalachian Voices and Friends of Chesterfield, a group of neighbors opposing the plant, criticized the DEQ’s decision.

“We are profoundly disappointed that DEQ is siding with corporate polluters and ignoring the health impacts of air pollution from this dirty methane-fired power plant on our community,” said Glen Besa, chair of Friends of Chesterfield. Matt Allenbaugh, Appalachian Voices’ Virginia campaign coordinator, said it was “unacceptable that Chesterfield residents will be exposed to decades of additional air pollution after finally getting relief from the coal plant.”

US economic growth accelerates in third quarter

Summary

  • US gross domestic product rose at a 4.3% annualized rate in the third quarter, beating expectations
  • accelerated to a 3.5% pace, led by a rush to buy electric vehicles
  • Economists warn momentum has faded amid rising living costs and a prolonged
  • Higher-income households are driving growth, underscoring a widening K-shaped economy

WASHINGTON, Dec 23 (Reuters) – The U.S. economy grew faster than expected in the third quarter, driven by robust consumer spending, but momentum appears to have faded amid the rising cost of living and recent government shutdown.

Gross domestic product increased at a 4.3% annualized rate last quarter, the ‘s Bureau of Economic Analysis said in its initial estimate of third-quarter GDP on Tuesday. The economy grew at a 3.8% pace in the second quarter. Economists polled by Reuters had forecast GDP would rise at a 3.3% pace.

The data was delayed by the 43-day government shutdown and is now outdated. Consumer spending increased at a 3.5% rate last quarter after advancing at a 2.5% pace in the second quarter.

Much of the consumer spending acceleration resulted from a rush to buy electric vehicles before the September 30 expiration of tax credits. Motor vehicle sales dropped in October and November, while spending elsewhere was mixed.

The nonpartisan Congressional Budget Office has estimated the shutdown could slice between 1.0 percentage point and 2.0 percentage points off GDP in the fourth quarter. It projected most of the GDP drop would be recovered, but estimated between $7 billion and $14 billion would not.

HIGHER-INCOME HOUSEHOLDS DOING THE HEAVY LIFTING

Surveys suggest consumer spending is being driven by higher-income households, thanks to a stock market boom that has inflated household wealth. In contrast, middle- and lower-income consumers are struggling amid the rising cost of living resulting from ‘s sweeping , economists said, creating what they call a K-shaped economy.

That phenomenon also is playing out among businesses. Economists said large corporations have mostly managed to withstand the blow from the import duties, which have increased costs, and are investing in . But smaller businesses are struggling with tariffs.

Trump’s policies are contributing to what economists have termed an affordability crisis that is denting his approval ratings. Households also face higher utility bills as the rapid growth of AI and cloud computing boosts demand. Some will face skyrocketing health insurance premiums in 2026.

The this month cut its benchmark overnight interest rate by another 25 basis points to the 3.50%-3.75% range, but signaled borrowing costs were unlikely to fall in the near term as policymakers await clarity on the direction of the labor market and .

(Reporting by Lucia Mutikani; Editing by Paul Simao and Chizu Nomiyama)

 

Wall Street advances with broad gains, tech gains continue

Summary

  • Tech stocks led gains, lifting nearly all sectors
  • S&P 500 and Dow sit less than 1% from record closing highs
  • and Micron boosted semiconductor shares
  • Trading volumes thinned ahead of the Christmas holiday

NEW YORK, Dec 22 (Reuters) – closed higher to kick off the holiday-shortened trading week on Monday, buoyed partly by a continued rebound by in a broad advance that saw gains among almost all of the 11 S&P 500 sectors.

The bounce in tech names began late last week and was driven by Micron Technology’s blowout forecasts and a cooler-than-expected report, which has left the S&P 500 and Dow less than 1% from their record closing levels set on December 11.

Nvidia shares rose and provided the biggest lift to the benchmark S&P 500. Reuters reported the company has told Chinese clients it aims to start shipping its second-most powerful AI chips to China before the Lunar New Year holiday in mid-February.

Micron climbed 4% while most other chipmakers also advanced to put the PHLX semiconductor index up 1.1%.

“I don’t necessarily think it’s going to go much higher; it’s going to continue to churn,” said Ken Polcari, partner and chief market strategist at Slatestone Wealth in Jupiter, Florida.

“Today we’re trading higher, but I wouldn’t be surprised if we back off again and then we just rally again right into about where we are.”

The Dow Jones Industrial Average rose 227.79 points, or 0.47%, to 48,362.68, the S&P 500 gained 43.99 points, or 0.64%, to 6,878.49 and the Composite gained 121.21 points, or 0.52%, to 23,428.83.

December has historically been a strong period for stock markets. Since 1950, the Santa Claus rally has been reflected by the S&P 500 rising by an average of 1.3% over the last five trading days of the year and the first two trading days in January, according to the Stock Trader’s Almanac.

This year, that period starts on Wednesday and runs through January 5.

Optimism about AI, signs of a resilient U.S. economy, and expectations for monetary policy easing have outweighed concerns about U.S. , helping to put the three main U.S. indexes on course for their third consecutive year of gains. The S&P 500 is up 17% on the year.

Most of the 11 S&P sectors traded higher. Materials, up 1.4% and energy, up 1.1%, were among the best performers as commodity prices jumped. The tech sector gained 0.4% while financials gained 1.3% to close at a record.

THIN TRADING AHEAD OF HOLIDAYS

‘s fear gauge, the CBOE volatility index, saw its lowest closing level since December 13, 2024, at 14.08.

Trading volumes were light and were likely to thin out further as the holiday approaches. U.S. stock markets will close at 1 p.m. ET (1800 GMT) on Wednesday and shut on Thursday for Christmas.

Volume on U.S. exchanges was 14.57 billion shares, compared with the 16.9 billion average for the full session over the last 20 trading days.

However, economic data, including the preliminary reading of third-quarter GDP, December consumer confidence data, and weekly jobless claims, are scheduled for release this week, offering insights about the health of the U.S. economy as well as hints about the monetary policy path.

“Tomorrow’s GDP number is going to be the last real piece of economic data that anyone really cares about,” said Polcari.

Among other movers, Tesla gained 1.6% after CEO Elon Musk’s 2018 pay package was restored by the Delaware Supreme Court.

rose 3.5% after Oracle co-founder Larry Ellison agreed to provide a personal guarantee of $40.4 billion of the equity financing for Paramount Skydance’s offer to acquire the company. Paramount climbed 4.3%

Clearwater Analytics Holdings rallied 8.1% after a group of firms led by Permira and Warburg Pincus clinched a deal to acquire the investment and accounting software maker for about $8.4 billion, including debt.

​Advancing issues outnumbered decliners by a 2.15-to-1 ratio on the NYSE and by a 1.61-to-1 ratio on the Nasdaq.

The S&P 500 posted 42 new 52-week highs and five new lows while the Nasdaq Composite recorded 113 new highs and 128 new lows.

(Reporting by Chuck Mikolajczak, additional reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Krishna Chandra Eluri and Rod Nickel)

 

US lawmakers want disclosure of license reviews for Nvidia H200 chip sales to China

WASHINGTON, Dec 22 (Reuters) – Two senior Democratic lawmakers on Monday asked the U.S. to disclose details and any approvals of ongoing license reviews for potential sales to Chinese firms of ‘s second-most powerful AI chips.

this month said he would allow sales of Nvidia’s to China, with the U.S. government collecting a 25% fee. Trump said the sales would help keep U.S. firms ahead of Chinese chipmakers by cutting demand for Chinese chips.

U.S. Senator and Representative Gregory Meeks in a letter asked the Commerce Department to disclose all license applications for the H200 chips for Chinese companies and disclose any approved licenses within 48 hours of the approval date. The lawmakers also want a briefing on the issue before approvals are issued, including “an assessment of the military potential of the chips approved for export and the reaction of allies and partners to the decision to export these chips,” according to the letter, which was seen by Reuters.

Warren earlier this month called on Congress to compel Nvidia CEO Jensen Huang to testify before lawmakers, and said Trump’s decision to allow H200 sales to Chinese companies “risks turbo-charging China’s bid for technological and military dominance and undermining U.S. economic and national security.”

The Commerce Department and Nvidia did not immediately respond to a request for comment.

Trump’s announcement represented a major policy shift from the Biden administration, which banned advanced AI chip sales to China due to national security concerns. Last week, Reuters reported that the Commerce Department has launched a review that could result in the first shipments of H200 chips to China.

Warren and Meeks also want to see the text of any government-to-government agreement the signed to allow the shipments as well as the Commerce Department’s “assessment of the performance of the most advanced chips (China) is producing indigenously, as well as how many chips (China) has the capacity to produce.”

Reuters, citing sources, reported earlier on Monday that Nvidia told Chinese clients that the company aims to start shipping the H200 chips to China before the Lunar New Year holiday in mid-February. Reuters reported that Nvidia plans to fulfill initial orders from existing stock, with shipments expected to total 5,000 to 10,000 chip modules – equivalent to about 40,000 to 80,000 H200 AI chips.

(Reporting by David Shepardson in Washington and Karen Freifeld in New York; Editing by Franklin Paul and Paul Simao)

 

Alphabet to buy clean energy developer Intersect in $4.75 billion deal amid AI push

Dec 22 (Reuters) – said on Monday it would buy developer Intersect for $4.75 billion in cash, plus assumed debt, as tech giants spend billions to expand the computing and power capacity necessary for developing .

Big Tech has ramped up investments in energy firms as U.S. power grids struggle to keep pace with the soaring demand of generative AI amid an intensifying race to capitalize on the booming technology.

Under the deal, the parent will acquire Intersect’s energy and data center projects in development or under construction.

The company has $15 billion of assets either operating or under construction. By 2028, Intersect projects representing about 10.8 gigawatts of power are expected to be online or in development. This is more than 20 times the electricity produced by the Hoover Dam.

The adds to a string of Alphabet’s investments and partnerships in the energy space. Earlier this month, utility company NextEra expanded its partnership with Google Cloud to build new energy supplies for the company’s operations across the U.S.

DEAL TERMS

Google, along with TPG Rise Climate, backed Intersect as part of a more than $800 million funding round in December last year. That announcement also included plans to develop industrial parks for housing gigawatts of data center capacity co-located with new clean energy plants.

Intersect’s operations will remain separate from Alphabet. The company’s existing operating assets in Texas and its operating and in-development assets in California will not be part of the acquisition and will operate as an independent company, supported by existing investors, Alphabet said.

Its Texas projects include Quantum, a clean energy storage system being built directly alongside a data center campus for Google.

Intersect will also explore a range of emerging technologies to increase and diversify energy supply, while supporting Google’s U.S. data center investments, Alphabet said.

(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar)

 

Warner Bros bidding war and red hot M&A market has dealmakers working through holidays

Summary

  • December announcements reached $463.6 billion, up 30% from last year
  • Bankers report one of the busiest holiday deal seasons in recent memory
  • Warner Bros Discovery bidding war keeps advisers working through Christmas
  • Dealmakers see a strong pipeline setting up major transactions in early 2026

NEW YORK, Dec 22 (Reuters) – A flurry of multi-billion-dollar deals has bankers and advisers from to Canary Wharf packing laptops next to presents and warning family and friends their holiday vacations over the next two weeks will be cut short.

There have been $463.6 billion in announced this month, 30% more than last year, including Trump Media & Technology Group’s $6 billion merger with nuclear fusion firm TAE Technologies, IBM’s $11 billion purchase of data infrastructure company Confluent and a bidding war between Paramount Skydance and Netflix for Warner Bros Discovery, according to data compiled by Dealogic.

“This is the hunt and the finish, and we all enjoy it,” said Charles Ruck, a partner at Latham & Watkins, which is advising Paramount on its bid for Warner Bros. “I’m not telling anybody not to travel. I’m telling them, wherever you are, I might need some of your time.”

Just this weekend, a group of firms led by Permira and Warburg Pincus inked a deal to buy investment and accounting software maker Clearwater Analytics Holdings for about $8.4 billion, including debt.

“It’s busy, and it’s really broad-based … we’re seeing a fair amount of activity across most of our industry sectors,” said John Collins, global head of M&A at Morgan Stanley.

WARNER BROS BIDDING WAR

This holiday season is shaping up to be one of the most active in recent years, according to interviews with about a dozen bankers and legal advisers.

Investment bankers at Citigroup said last month was the busiest November in years. Dealmakers from New York to London and Hong Kong say they are trying to close numerous multi-billion-dollar deals before the ball drops in Times Square on New Year’s Eve. As the C-suite gets more aggressive, several big companies are looking to hire advisers before the end of the year to tee up big deals in 2026. Two dealmakers in London and New York say they plan to work through the holidays, while some are optimistic that they will take off Christmas Day and, fingers crossed, Christmas Eve too.

That may be more difficult for bankers, advisers and public relations professionals working on the Warner Bros deal. The bidding war keeps them close to their phones and laptops this holiday season, with some working through Christmas. On Monday, Paramount revised its $108.4 billion hostile bid, which is being jointly financed by RedBird Capital Partners, with an extended deadline of January 21.

“We’re going to be working through the holidays and into the first week of January to communicate the merits of our offer to shareholders,” RedBird founder and Chief Investment Officer Gerry Cardinale said on CNBC on Monday.

That is far from the only deal in town. Latham’s Ruck, who declined to discuss the Warner Bros talks, told Reuters last week the firm expected to announce at least four more deals in the next two weeks.

“Our team understands it without me saying it,” he said. “They recognize that this is a magic moment, that these magic moments don’t last forever, that we are on front-page, cutting-edge deals.”

This has turned out to be an extraordinary year for dealmakers after a trade war kicked off by U.S. derailed activity in the second quarter. Globally, surpassed $4.8 trillion as of last week, making it the second-best year on record after 2021, when near-zero interest rates and COVID stimulus drove M&A to over $6 trillion.

DEALS PIPELINE STRONG FOR EARLY 2026

At Sullivan & Cromwell, partner Frank Aquila plans to work through the holidays. The pipeline is “very strong” for the first half of next year, which he said could rival 2021.

“This will very much be a working holiday,” he said in an interview.

Guillermo Baygual, global co-head of M&A at Citigroup, said his team is “extremely busy. There’s a lot happening, both in the corporate and in the sponsor world.”

A lot of corporate clients are hiring advisers for “significant transactions across sectors,” he said.

Added Collins: “We went through a couple years where it just felt like management teams and boards were finding reasons to say no. We have seen a real shift in philosophy towards trying to find reasons to say yes.”

(Reporting by Dawn Kopecki in New York and Charlie Conchie and Anousha Sakoui in LondonEditing by Rod Nickel)

 

CACI to buy Arka Group for $2.6B

Reston-based government contractor announced Monday that it has entered into an agreement to acquire Danbury, Connecticut-based and Arka Group for $2.6 billion.

The all-cash transaction would result in about 1,000 Arka employees, including about 315 software engineers, joining CACI. Arka provides space and defense technology for government agencies and the intelligence community. Its products and services include remote sensing payloads, agentic software and laser-guided threat detection systems.

The transaction is expected to close in the first quarter of 2026, which is CACI’s fiscal 2026 third quarter. CACI expects to realize a tax benefit presently valued at $225 million from the transaction, which is subject to regulatory approvals and customary closing conditions.

In a statement, CACI President and CEO John Mengucci said that Arka brings “deep experience and proven performance as a best-in-class provider of national security space and defense capabilities.” He described the as “a significant step forward” in CACI’s space strategy.

“For our shareholders, the acquisition of ARKA positions CACI to capture significant future opportunities in the space domain across intelligence community, U.S. Space Force and other customers,” said Mengucci in a statement. “The combination enhances our ability to drive long-term growth in free cash flow and generate additional shareholder value.”

According to an investor presentation, CACI expects ARKA to contribute about $650 million in revenue and $145 million in EBITDA (earnings before interest, taxes, depreciation and amortization) over the next 12 months.

“I am confident that CACI will provide outstanding pathways for our employees to thrive,” Arka President and CEO Andreas Nonnenmacher said in a statement. “Our aligned mission-focused cultures and deep engineering roots create a strong foundation for future innovation and growth, and our customers will benefit right away from the expanded capabilities of the combined company.”

Wells Fargo served as exclusive financial adviser to CACI and provided committed financing for the transaction, while Gibson Dunn served as legal adviser. J.P. Morgan Securities and Evercore acted as financial advisers for ARKA, while Simpson Thacher & Bartlett acted as Arka’s legal adviser.

Founded in 1962, CACI serves intelligence and defense agencies. It has more than 25,000 employees and reported $8.6 billion in revenue for fiscal 2025.

Dominion wind farm among 5 projects paused by Trump

SUMMARY: 

The Trump administration on Monday said it suspended leases for five large-scale offshore wind projects that are being built off the East Coast over concerns they would interfere with military radar systems.

According to the , Dominion Energy’s $10.9 billion Coastal Virginia Offshore Wind project off the coast of Virginia Beach is among the five projects. The five wind farms include Revolution Wind off the coast of Rhode Island and Connecticut, Vineyard Wind 1 off Massachusetts, and Sunrise Wind and Empire Wind off New York, in addition to CVOW.

Dominion said in a statement that the suspension is for 90 days.

“The Coastal Virginia Offshore Wind project is essential for American national security and meeting Virginia’s dramatically growing energy needs, the fastest growth in America,” the Richmond-based utility said Monday. “This growth is driven by the need to provide reliable power to many of America’s most important war fighting installations, the world’s largest warship manufacturer, and the largest concentration of on the planet as well as the leading edge of the AI revolution.

“Stopping CVOW for any length of time will threaten grid reliability for some of the nation’s most important war fighting, AI and civilian assets. It will also lead to energy and threaten thousands of jobs.”

Gov.-elect Abigail Spanberger, who takes office in January 2026, issued a statement: “The Coastal Virginia Offshore Wind project is on track to be America’s largest offshore wind project — preparing to power hundreds of thousands of homes across the commonwealth and, importantly, lower energy costs for Virginians. Halting this project not only risks higher rates for consumers, but leaves Virginia vulnerable to grid disruptions and national security risks. As the next governor of Virginia, my top priority is lowering costs for Virginia families — including reducing Virginians’ utility bills. Going forward, I am prepared to work with Virginia industry, as well as elected leaders on both sides of the aisle, to make sure this project is completed.”

Dominion also noted that the project has bipartisan support in Virginia, including outgoing Gov. Glenn Youngkin, a Republican. His office did not immediately respond to a request for comment Monday.

Virginia Democratic U.S. Sens. Mark Warner and Tim Kaine, along with U.S. Rep. Bobby Scott, issued a sharp response to the White House decision.

“Despite our senior roles on the Senate Intelligence and Armed Services committees, the administration has failed to share any new information that supports this sudden and sweeping move to halt all offshore wind development, including a project off the coast of Virginia that is almost complete and operational,” the three members of Congress said in a statement Monday. “That silence speaks volumes, especially given the president’s longstanding, well-documented opposition to offshore wind — and the promises he’s made to his donors to put his thumb on the scale against certain energy projects. This reckless, haphazard approach puts billions of dollars in private investment at risk, threatens thousands of good-paying American jobs coming to a veteran-heavy area, undermines energy security and damages the credibility of the United States government.”

Earlier this year, Dominion said that the wind farm was expected to be in operation in late 2026. The 2.6-gigawatt project is expected to power 660,000 homes, and onshore and offshore cables were set to be installed in early 2026, the Fortune 500 utility said in August. Its cost has risen from the original $9.8 billion to about $10.9 billion, in part because of enacted under , Dominion said in May.

Dominion’s stock fell from $58.35 per share at opening to $56.08 at 10 a.m., but had recovered to $56.88 by 10:44 a.m. Monday.

The CVOW project, which was approved under President Joe Biden’s administration, had so far evaded a pause under Trump, who ordered a halt to construction in August to the 80% complete $4 billion offshore wind project Revolution Power off the coast of Rhode Island and Connecticut. The Trump administration previously stopped work on Empire Wind, off New York.

“The project has been more than 10 years in the works, involved close coordination with the military, and is located 27 to 44 miles offshore, so far offshore it does not raise visual impact concerns,” Dominion added in its statement Monday. “The project’s two pilot turbines have been operating for five years without causing any impacts to national security. CVOW enjoys bipartisan support and is within months of generating a massive 2,600 megawatts to support the fastest growing part of America’s energy grid. This growth serves the largest concentration of critical infrastructure in the world.”

The suspension marks the latest blow for offshore wind projects that have faced repeated disruptions under Trump, who has said he finds them ugly, costly and inefficient.

Shares in Danish energy firm Orsted, which owns two of the projects affected, traded down more than 11% at 2:15 p.m. GMT.

“The prime duty of the United States government is to protect the American people,” Secretary of the Interior Doug Burgum said in a press release.

The department said the project leases were being suspended after the Pentagon raised concerns that the movement of huge turbine blades and the highly reflective towers cause radar interference. The resulting “clutter” obscures legitimate moving targets and generates false targets in the vicinity of the wind projects, it said.

The pause will give relevant federal agencies “time to work with leaseholders and state partners to assess the possibility of mitigating the national security risks posed by these projects,” the department said in the release.

Orsted, Equinor and Copenhagen Infrastructure Partners were not immediately available for comment.

In August, the administration had ordered Orsted to halt already advanced construction on the Revolution Wind project off the Rhode Island coast, though a federal judge later lifted the ban. Earlier this year, the administration lifted a stop-work order on Equinor’s Empire Wind in a compromise with New York state.

Trump had campaigned on a promise to end the offshore wind industry saying it is too expensive and hurts whales and birds, while promoting oil and gas.

The uncertainty has taken a financial toll on developers. Orsted raised $9.4 billion earlier this year to help fund U.S. projects after potential partners were deterred by Trump’s hostility to wind power.

(Reporting for Reuters by Ryan Patrick Jones in Toronto and Stine Jacobsen in Copenhagen; Writing by Richard Valdmanis; Editing by Doina Chiacu and Toby Chopra)