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Companies say merger will bring better service to customers

Pepco Holdings and Exelon announced on April 30 that they would be merging. On Aug. 19, the companies filed a regulatory request with the Maryland Public Service Commission. If regulatory approval for the $6.8 billion deal is granted, the two companies say that there will be fewer and shorter power outages for customers. In addition, the companies say that that merger would result in $623 million in economic impact and result in 7,100 more jobs.

If the merger is successful, the new company would provide $40 million toward a customer investment fund. The fund would be used to help low-income customers as well as promote energy-efficiency. Pepco currently has 801,000 customers in Maryland with 256,000 of them being Delamarva Power rate payers. Shareholders of Pepco Holdings are scheduled to vote on the all-cash offer from Exelon on Sept. 23.

In a statement, Exelon says that the 7,100 new jobs that would result from the transaction would be created indirectly. There was no word as to what type of jobs they would be or how much they would pay. If regulatory approval is granted and Pepco shareholders approve the merger, it would likely be completed in the second or third quarter of 2015.

Certain types of Business acquisitions may require approval from regulators. This ensures that the the new company will provide better service for customers and will not significantly prohibit competition. Those who are looking to sell their company or acquire another company may wish to speak to a business law attorney who may be able to review the terms of the proposed transaction to increase the odds that it gains necessary approval.

Source: Baltimore Business Journal, "Exelon and Pepco promise jobs, fewer outages in Maryland if merger is approved", Mark Holan, August 19, 2014

Source: Baltimore Business Journal, "Exelon and Pepco promise jobs, fewer outages in Maryland if merger is approved", Mark Holan, August 19, 2014

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