Pepco, Exelon close deal af­ter get­ting fi­nal ap­proval

The Pak Banker - - COMPANIES/BOSS -

Exelon Corp closed its $6.8 bil­lion merger with Pepco Hold­ings Inc on Wed­nes­day, shortly af­ter re­ceiv­ing the fi­nal reg­u­la­tory ap­proval to cre­ate the largest U.S. power dis­trib­u­tor, Exelon said. Pepco's shares rose 27 per­cent, or $5.69, to close at $26.93. Exelon ended 0.8 per­cent lower at $34.72. The three-mem­ber com­mis­sion, which reg­u­lates power, gas and telecom­mu­ni­ca­tions in Wash­ing­ton, voted 2 to 1 for the merger af­ter the com­pa­nies agreed to con­ces­sions de­manded by city lead­ers.

"We've made a num­ber of com­mit­ments to cus­tomers in all of the Pepco Hold­ings util­i­ties' ju­ris­dic­tions - the Dis­trict, Mary­land, Delaware and New Jersey - and we look for­ward to get­ting to work to de­liver those ben­e­fits to our cus­tomers and com­mu­ni­ties," Exelon Chief Ex­ec­u­tive Chris Crane said in a state­ment. Exelon struck deals worth $430 mil­lion with util­ity reg­u­la­tors in Delaware, Mary­land, New Jersey and Wash­ing­ton, the com­pany said in the state­ment. The merger an­nounced in April 2014 was pre­vi­ously ap­proved by the U.S. Fed­eral En­ergy Reg­u­la­tory Com­mis­sion and other state util­ity com­mis­sions. The Wash­ing­ton D.C. Pub­lic Ser­vice Com­mis­sion, which re­jected the deal in Au­gust, agreed to re­con­sider af­ter Exelon pledged to in­crease its pro­posed in­vest­ment in the dis­trict to $78 mil­lion from $14m.

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