CHICAGO (AP) - Exelon is buying Pepco Holdings Inc. for $6.83 billion to create a large electric and gas utility in the Mid-Atlantic region.
Exelon will pay $27.25 per Pepco share, an 18 percent premium to the company's $23.10 closing price on Tuesday.
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.
Exelon President and CEO Chris Crane will serve in those roles for the combined company.
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.
Congressman John K. Delaney (MD-6) releases the following statement:
"While we look forward to reviewing the details as to how the merger will benefit our constituents, we believe that the scale created by this business combination can be used to increase investment in the service area, which can drive higher levels of reliability and we are encouraged by Exelon and Pepco's joint commitment to focus on customer service through the transition."