Summary
Exelon Corporation (EXC) filed an 8-K on August 12, 2015, to provide an update on the proposed merger with Pepco Holdings, Inc. (PHI). The key development reported is the denial of a stay by the Circuit Court of Queen Anne’s County, Maryland, on August 12, 2015. This denial of the stay by the court means that the Maryland Public Service Commission's (MDPSC) prior approval of the merger, albeit with modified conditions, can proceed without further immediate judicial interruption. This is a positive step towards the completion of the acquisition. The filing also reiterates that the merger is still subject to the approval of the District of Columbia's public service commission. Exelon had previously committed to fulfilling the modified conditions and customer benefits required by the MDPSC following their approval. The company continues to anticipate closing the merger in the third quarter of 2015, contingent on receiving the final regulatory approvals.
Key Highlights
- 1The Circuit Court of Queen Anne’s County, Maryland, denied motions seeking a stay of the Maryland Public Service Commission's (MDPSC) order approving the Exelon-Pepco Holdings merger.
- 2This denial of the stay is a crucial step forward, allowing the merger process to continue without further judicial delay in Maryland.
- 3The merger remains subject to approval by the public service commission of the District of Columbia.
- 4Exelon and Pepco Holdings had previously committed to fulfilling the modified conditions and customer benefits imposed by the MDPSC.
- 5The Hart-Scott-Rodino Act requirements have been satisfied, and no longer preclude the completion of the merger.
- 6Exelon continues to expect the merger to be completed in the third quarter of 2015.