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Duke Energy Merges With Progress Energy: Largest Power Firm Created in the US - Deal Analysis form GlobalData
GlobalData, Jan 2011, Pages: 5
Duke Energy Merges With Progress Energy: Largest Power Firm Created in the US - Deal Analysis form GlobalData
Summary
Duke Energy Corporation received approval of a definitive merger agreement with Progress Energy, Inc. Duke Energy Corp. will buy Progress Energy, Inc. for $13,700m in stock, creating the largest US utility and increasing its ability to build new power plants to meet future greenhouse gas emissions limits. The combined company, to be called Duke Energy, will be the largest power provider in the US, with $37,000m in market capitalization and a base of 7.1 million electric consumers. The new company, valued at $65,000m, would have the largest fleet of regulated nuclear power plants in the country, serving customers with a mix of coal, nuclear, natural gas, oil and renewable resources. Following completion of the merger, officials expect Duke Energy shareholders to own about 63% of the combined company and Progress Energy shareholders will hold some 37%.
The most important factor behind the deal is that the new company’s size will be able to better afford the need to step up investment in low carbon forms of energy.
Scope
- The information related to Duke Energy and Progress Energy merger.
- Key drivers of the deal
- Rationale of the deal
- A brief on companies, Duke Energy Corporation and Progress Energy, Inc.
Reasons to buy
The Deal Report allows the reader to -
- Understand the reasons for the acquisition
- Understand the response from the markets
- Understand the impact of the deal on Duke Energy
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