Duke to Buy Progress Energy for $13.7 Billion

New York Times is reporting that the Boards of both Duke Energy and Progress Energy have unanimously approved a deal for Duke to buy Progress. The deal values Progress at $13.7 billion and the resulting company to be called Duke Energy would be the largest in the US with revenues of $22.7 billion and over 7 million customers. Duke Energy has about 35,000 MW of electric generating capacity and Progress Energy has about 22,000 MW of generating capacity.

The companies hope to complete the deal by the end of 2011. Several regulators will have to sign off, including the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and two state authorities. If the deal is cleared, Mr. Rogers is expected to become executive chairman, a role in which he would advise the chief executive on strategy and be the company’s main voice on energy policy. William D. Johnson, the chairman, president and chief executive officer of Progress Energy would become president and chief executive of the newly formed company, to be called Duke Energy.