Wisconsin Energy Corporation (NYSE: WEC) is set to acquire Integrys Energy Group Inc. (NYSE:TEG) for $9.1 billion in cash, stock and assumed debt, according to an official statement from Integrys. The two companies have entered into a definitive agreement regarding the acquisition, and once the sale is completed, the new entity will be named WEC Energy Group, Inc. Wisconsin Energy will pay 1.128 of its shares and $18.58 in cash for each Integrys share, which places a value of $71.47 per Integrys share.
Once combined, WEC Energy Group will provide gas and electricity to more than 4.3 million customers in Wisconsin, Illinois, Michigan and Minnesota. It'll have almost 71,000 miles of electric lines and more than 44,000 miles of gas distribution lines, according to a company statement.
Both companies plan to continue with Integrys' five-year plan to invest $3.5 billion in new infrastructure to improve reliability of the energy grid and customer service. WEC Energy Group will also continue to honor preexisting labor agreements.
The acquisition is subject to the approval of both company's shareholders and the relevant federal and state regulatory commissions, and is expected to be completed by summer 2015.