Duke, Progress merger wins conditional federal approval

Duke Energy (NYSE: DUK) and Progress Energy (NYSE: PGN) won conditional federal approval on June 8 for a $26 billion merger that would create the country's largest utility. The companies intend to close their proposed merger by the targeted date of July 1, according to Duke Energy.

The companies have substantially completed their evaluation of the orders’ conditions and expect to make a compliance filing with the Federal Energy Regulatory Commission (FERC) within 15 days, as requested by the FERC. They also intend to work to secure final merger-related approvals from the North Carolina Utilities Commission (NCUC) and Public Service Commission of South Carolina (PSCSC) as quickly as possible, according to Duke Energy.

To date, the companies have received merger-related approvals from, or met the requirements of, the U.S. Department of Justice under the Hart-Scott-Rodino Act, U.S. Nuclear Regulatory Commission, Kentucky Public Service Commission, Federal Communications Commission and the shareholders of both companies.

The NCUC is required to approve the merger and the Joint Dispatch Agreement. The PSCSC must also approve the Joint Dispatch Agreement. Both commissions are expected to determine their schedules for considering the merger-related dockets soon.

While the companies continue to target a July 1 closing date, the timing is dependent on receiving the remaining state regulatory approvals and submitting additional compliance filings with the FERC. In addition, the consummation of the merger is contingent on satisfying all the conditions to the merger according to the terms of the merger agreement.

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