Summary
Exelon Corporation (EXC) has filed an 8-K report on February 17, 2015, detailing a significant development in its proposed merger with Pepco Holdings, Inc. (PHI). The primary focus of this filing is the execution of a settlement agreement with various stakeholders in Delaware, including the Delaware Public Service Commission (PSC) staff, the Delaware Public Advocate, and environmental agencies. This settlement is a crucial step towards obtaining regulatory approval for the merger, which was initially agreed upon in April 2014 and subsequently amended. The company reiterated its expectation to close the merger in the second or third quarter of 2015, following the expiration of the Hart-Scott-Rodino Act review period. While the Delaware settlement is subject to final approval by the PSC Commissioners, it signifies progress in navigating the regulatory landscape. Investors should note that approvals from the public service commissions of the District of Columbia and Maryland are still pending, in addition to the final Delaware approval. This filing provides an update on the regulatory path to completing the acquisition.
Key Highlights
- 1Exelon Corporation (EXC) filed an 8-K on February 17, 2015, to report on the Pepco Holdings, Inc. (PHI) merger.
- 2A settlement agreement has been filed with the Delaware Public Service Commission (PSC) regarding the merger.
- 3The settlement involves Exelon, PHI, and key Delaware regulatory and environmental entities.
- 4The settlement is a required step for obtaining regulatory approval in Delaware.
- 5Exelon and PHI continue to target a merger completion in the second or third quarter of 2015.
- 6Regulatory approvals from the District of Columbia and Maryland Public Service Commissions are still pending.
- 7The Hart-Scott-Rodino Act review period has expired, removing a potential impediment to the merger.