Summary
This 8-K filing by Exelon Corporation on September 5, 2014, provides a procedural update regarding its proposed merger with Pepco Holdings, Inc. (PHI). Exelon voluntarily withdrew its pre-merger notification filing with the Department of Justice (DOJ) under the Hart-Scott-Rodino (HSR) Act, effective the same day, with plans to refile on September 9, 2014. This action is intended to restart and extend the DOJ's review period by an additional 30 days, a common strategy to allow for further regulatory assessment. The primary implication for investors is a potential slight delay in the closing of the merger, pushing the expected completion date further into the second or third quarter of 2015. While this is a procedural step and not indicative of a problem with the merger itself, it does mean that the timeline is subject to regulatory review. Exelon and PHI remain committed to cooperating with the DOJ and continue to expect the merger to close within the previously stated timeframe.
Key Highlights
- 1Exelon Corporation (EXC) filed an 8-K on September 5, 2014, to report an update on its merger with Pepco Holdings, Inc. (PHI).
- 2Exelon voluntarily withdrew its Hart-Scott-Rodino (HSR) Act pre-merger notification filing with the DOJ on September 5, 2014.
- 3The company plans to refile the HSR notification on September 9, 2014.
- 4This withdrawal and refiling is a procedural step to allow the DOJ an additional 30 days for its review.
- 5The HSR waiting period is now expected to expire on October 9, 2014, unless extended or terminated earlier.
- 6The expected closing date for the merger remains in the second or third quarter of 2015.
- 7Exelon and PHI are cooperating with the DOJ during its review process.