NEW YORK (Reuters) - Duke Energy (DUK)(N), has said Monday it has agreed to buy progress Energy Inc. (PGN).(N) of $ 13.7 billion in stock, creating the largest company of the U.S. power.
Offer of the Duke was a differential of 6.4% over the last 20 trading days, the company said, and the case would be accretive to earnings of the Duke in the first year.
The transaction would create a giant industry with approximately 7.1 million electricity customers in Carolina North, South Carolina, Florida, Indiana, Kentucky and Ohio and 57 000 megawatts of generating capacity.
Duke is currently the third U.S. utility and become the two most important production capacity and market value if the purchase is completed.
Which could create a barrier for regulators, which have blocked or created roadblocks in other transactions in recent years.
Duke said Progress Energy shareholders would receive 2.6125 Duke Energy shares for each share held or $46.48 per share, which represents a 4 percent premium to Friday close actions of the New York Stock Exchange.
Duke Energy said assume also approximately 12.2 billion of debt from progress energy. The company also plans to conduct a reverse stock split immediately prior to closing.
Jim Rogers, President and CEO of the Duke, was to become President of the new company, while Bill Johnson, President and CEO of progress would become CEO of the merged companies.
Duke Energy shares at $17.79 in the New York Stock Exchange is closed Friday.
Progress share rose 1% in Premarket trade at $45.20, then Duke dragged less than 1% at $17.70 actions.
(Reporting by Matt daily, additional reporting by Thyagaraju Adinarayan in Bangalore.) (Editing by Maureen Bavdek)
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