Duke Energy said on Tuesday it would sell its Tennessee natural gas distribution business to Spire for $2.48 billion in cash, as the utility aims to streamline operations and unlock capital to invest in electric grid upgrades.

The acquisition, pending regulatory approvals, will result in the creation of a new business unit, Spire Tennessee.

Duke Energy agreed to sell its Piedmont Natural Gas Tennessee local distribution company business to Spire for $2.48B in cash.