Charlotte, North Carolina, USA — ESI-AFRICA.COM — 11 January 2011 – Duke Energy Corporation and Progress Energy Incorporated have announced that both companies’ boards of directors have unanimously approved a definitive merger agreement to combine the two companies in a stock-for-stock transaction. The US$26 billion transaction will create the largest utility in the United States with a combined enterprise value of US$65 billion.
The merged company “’ to be known as Duke Energy “’ will provide approximately 57GW of domestic generating capacity from a diversified mix of coal, nuclear, natural gas, oil and renewable resources.
It will also have the country’s largest regulated customer base, providing service to around 7.1 million electricity customers in the six regulated service territories of North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio.
“Our industry is entering a building phase where we must invest in an array of new technologies to reduce our environmental footprints and become more efficient,” said Jim Rogers, chairman, president and CEOof Duke Energy. “Combining Duke Energy and Progress Energy creates a utility with greater financial strength and enhanced ability to meet our challenges head-on,” Rogers continued.
“This combination of two outstanding companies is a natural fit,” said Bill Johnson, chairman, president and CEO of Progress Energy. “It makes clear strategic sense and creates exceptional value for our shareholders. Together, we can leverage our best practices to achieve even higher levels of safety, operational excellence and customer satisfaction, and save money for customers by combining our fuel purchasing power and the dispatch of our generating plants, he added.