Duke Energy has agreed to purchase Progress Energy in a major deal of involving utility companies that operate in the Carolinas.
Duke Energy Corporation is buying Progress Energy, Inc. for $26 billion, which would include more than $13 million in stock. The deal announced Monday would create one of the nation’s largest utilities.
The combining of the two corporations would create a business with about 7.1 million election customers in South Carolina, North Carolina, Florida, Ohio, Kentucky and Indiana.
Under the agreement, Progress Energy shareholders will receive 2.61 shares of common stock of Duke Energy in exchange for each share of Progress Energy common stock– based on Duke Energy’s closing share price on Friday. Duke indicated that Progress shareholders would get stock worth about $46.48 per share, or $13.7 billion.
Duke Energy will assume approximately $12.2 billion in Progress Energy net debt.
The companies aim to close the deal by the end of the year. The combined enterprise would have an approximate value of $65 billion.