Exelon (NYSE:EXC) and Pepco Holdings (NYSE:POM) have signed a definitive agreement to combine both companies in an all-cash transaction consideration of $27.25 per share, the companies announced on April 30.
The agreement, which has been unanimously approved by both companies’ boards of directors, brings together Exelon’s three top-performing electric and gas utilities – BGE, ComEd and PECO – and Pepco’s electric and gas utilities – Atlantic City Electric, Delmarva Power and Potomac Electric Power Company.
The transaction requires the approval of Pepco Holdings’ stockholders. Completion of the transaction is also conditioned upon approval by FERC, the District of Columbia Public Service Commission and several state regulators including the Delaware Public Service Commission, the Maryland Public Service Commission and the New Jersey Board of Public Utilities, the companies added. The transaction is also subject to the notification and reporting requirements under the Hart-Scott-Rodino Act and other customary closing conditions.
The combined utility businesses will serve about 10 million customers and have a rate base of about $26bn.
The companies added that they anticipate closing in the second or third quarter of 2015.
Exelon President and CEO Chris Crane said in the statement, “Exelon and Pepco Holdings have a compelling strategic rationale for merging, given our geographic proximity and similar utility business models.”
Pepco Holdings Chairman, President and CEO Joseph Rigby said in the statement, “This combination provides significant benefits for all of our stakeholders, including customers, employees and shareholders.”