Pepco Holdings, the parent company of Delmarva Power, announced it has signed an agreement to merge with Exelon Corporation.
The deal will combine Exelon’s three utility companies with Pepco Holdings’ three utility companies to provide gas and electric serve to more than 10 million customers across the Mid-Atlantic.
The companies have agreed to keep all six of their regional headquarters, which includes the Delmarva headquarters in Newark.
“This combination provides significant benefits for all of our stakeholders, including customers, employees and shareholders,” said Joseph Rigby, chairman, president and CEO of Pepco Holdings. “As part of this transaction, Exelon has committed to provide what our customers most want: investments in infrastructure improvements, continuation of our long tradition of philanthropy in our communities and direct customer benefits of $100 million. Our shareholders will benefit from an immediate cash premium, and employees should enjoy even more opportunities as part of a larger company.”
Rigby plans to retire after the closing of the transaction. Exelon President and CEO Chris Crane will remain in his capacity and head the combined company.
“Exelon and Pepco Holdings have a compelling strategic rationale for merging, given our geographic proximity and similar utility business models,” Crane said. “Our cultures are an excellent match, with a shared focus on operational excellence, environmental stewardship, customer service and support for the communities we serve.”
The companies anticipate closing the merger in the second or third quarter of 2015.