Friday, October 24th5.7°C
23888

Exelon buying Pepco for $6.83B, creating large Mid-Atlantic electric and gas utility

CHICAGO - Energy provider Exelon is buying Pepco Holdings Inc. for $6.83 billion to create a large electric and gas utility in the Mid-Atlantic region.

The deal will combine Exelon Corp.'s electric and gas utilities BGE, ComEd and PECO with Pepco's Atlantic City Electric, Delmarva Power and its namesake utility.

The combined utility businesses will serve approximately 10 million customers and have a rate base of approximately $26 billion.

Under terms of the deal, Exelon will pay $27.25 per Pepco share, an 18 per cent premium to the company's $23.10 closing price on Tuesday.

Shares of Pepco rose $1.51, or 6.6 per cent, to $24.30 before the opening bell on Wednesday.

Chicago's Exelon will put $100 million into a customer investment fund to be used across the Pepco utilities' service territories as each state public service commission feels is appropriate for customer benefits, such as rate credits, assistance for low income customers and energy efficiency measures.

Exelon President and CEO Chris Crane will serve in those roles for the combined company. Pepco Chairman, President and CEO Joseph Rigby will stay in his positions until the transaction closes. He had announced in January that he plans to retire in the first half of 2015. To help ease the transition, he'll step down as CEO near the end of this year after his successor is chosen.

The deal is expected to significantly add to Exelon's adjusted earnings in the first full year after the acquisition is complete.

Both companies' boards unanimously approved the transaction, which is targeted to close in 2015's second or third quarter. The deal needs approval from Pepco shareholders and regulatory approvals.

Exelon also announced mixed first-quarter results on Wednesday. The company reported adjusted earnings of 62 cents per share on revenue of $7.24 billion. Analysts surveyed by FactSet predicted earnings of 69 cents per share on revenue of $6.56 billion.

The Canadian Press


Read more Business News

23015


Recent Trending




Today's Market
S&P TSX14536.49+49.66
S&P CDNX804.69-3.91
DJIA16766.2288.32
Nasdaq4471.803+19.011
S&P 5001959.61+8.79
CDN Dollar0.8905+0.0001
Gold1231.20+2.10
Oil80.73-1.02
Lumber335.00+5.40
Natural Gas3.609-0.013

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.41+0.25
Copper Mountain Mining2.05-0.03
Colorado Resources0.135-0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.42+0.01

 



23825

FEATURED Property
20596253617 Veranda Court
3 bedrooms 3 baths
$335,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


23091