MDUResources group got one step closer to doubling its natural gas utility customers, the company announced.

Shareholders of the Washington-based natural gas company Cascade Natural Gas Corp. recently approved a merger agreement with MDUResources Group Inc., according to a news release.

The merger, which was announced on July 9, was approved by more than two-thirds of all shares of Cascade common stock, which was required before moving on to approval from several other entities, said Linda Donlin, communications director for MDU.

The company will acquire Cascade at $26.50 a share in cash. The transaction has been approved by the boards of directors of both MDUResources and Cascade.

Cascade has 11,413,019 outstanding shares, according to June filings, and officials expect the merger to be completed by mid-2007.

"Cascade's board of directors unanimously recommended adoption of the merger agreement, saying it is in the best interests of their shareholders,"said Terry D. Hildestad, president and CEOof MDUResources. "The strong affirmative vote demonstrates that shareholders agreed with their recommendation.We look forward to a successful regulatory approval process."

Cascade serves about 235,000 natural gas utility customers in Washington and Oregon. The merger will approximately double the number of MDUResource natural gas utility customers, according to the news release.

So far this year, MDUResources Group Inc. has bought into or acquired seven companies, the most recent being a $50 million joint investment with Companhia Energetica de Minas Gerais and Brascan Brasil Ltda. in acquiring Schahin Energia's interest in three electric energy transmission lines which Schahin had owned jointly with Cia. Tecnica de Engenharia Eletrica-Alusa in Brazil. Alusa continues its ownership in these transmission assets.

In September, Knife River Corp. acquired Kent's Oil Service, a 15,000-ton liquid asphalt facility, founded in 1984 and headquartered in Stockton, Calif.

Knife River also bought Wm. Winkler Co. and Valley Asphalt and Paving - both Spokane, Wash., companies - which were acquired in April.

Financial details regarding those acquisitions also were not released.

The three other companies MDU Resources Inc. acquired this year are:Desert Fire Holdings, a fire sprinkler company based in Las Vegas; San Joaquin Cogen, LLC, an independent power production company based in California; and natural gas and oil assets in Wyoming.

In 2004, MDU Resources acquired nine companies.

(Reach reporter Crystal Reid at 250-8261 or at crystal.reid@;bismarcktribune.com.)