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Monday, January 10, 2011

Duke Energy to buy Progress Energy for $13.7 bln, (NYSE: DUK), (NYSE: PGN)

Duke Energy (DUK.N) said on Monday it agreed to buy Progress Energy Inc (PGN.N) for $13.7 billion in stock, creating the largest U.S. power company if it wins approval from regulators in North and South Carolina. The transaction would create an industry giant with approximately 7.1 million electricity customers in North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio, and 57,000 megawatts of generating capacity. Duke's offer was a modest 6.4 percent premium over the last 20 trading days, the company said, and the deal would be accretive to Duke's earnings in the first year after completion.