Duke Energy and Cinergy announced today the completion of their planned merger, effective April 3, 2006.
The combination creates one of North America’s largest energy companies with approximately $36 billion in market capitalization, assets totaling more than $70 billion, and 5.5 million retail electric and gas customers in Ohio, Kentucky, Indiana, North Carolina, South Carolina and Ontario, Canada. The company will be known as Duke Energy.
With the close, Cinergy stockholders receive 1.56 shares of new Duke Energy common stock for each share of Cinergy common stock. Duke Energy stock will continue to trade on the New York Stock Exchange under the ticker symbol DUK. Both Duke Energy and Cinergy shareholders holding physical stock certificates will receive share exchange instructions in the next few weeks.
“Today we begin an exciting new chapter in Duke Energy’s history,” said Paul M. Anderson, chairman of the board and formerly chief executive officer. “Our newly combined power business now joins our natural gas businesses to rank among the largest in North America. Investors and customers alike will share in the efficiencies, cost savings and opportunities that our greater size and scope provide.”
“We’ve worked hard to reach this important milestone and our team is prepared to hit the ground running to deliver on the promise of the new Duke Energy,” said James E. Rogers, president and chief executive officer, formerly Cinergy chairman and chief executive officer. “The merger positions Duke Energy to meet future energy challenges and to grow.
“We’ll stay focused on delivering merger cost savings and solid returns for our shareholders while maintaining the quality and reliability of service our customers expect and deserve,” Rogers added.
The merger was announced May 9, 2005, and received all regulatory and shareholder approvals in less than 11 months. The combination was approved by both companies’ shareholders March 10, 2006, and received approvals from regulators in five states--Ohio, Kentucky, Indiana, North Carolina and South Carolina--and from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. The companies also satisfied Federal Trade Commission and U.S. Department of Justice review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Effective today, Duke Energy’s U.S. franchised electric and gas utilities--formerly Duke Power in the Carolinas; Cincinnati Gas & Electric in Ohio; Union Light, Heat and Power in Kentucky; and PSI Energy in Indiana--will be known as Duke Energy.