Pepco (POM) Stock Climbs on Exelon Merger Approval Request
NEW YORK (TheStreet) — Shares of Pepco (POM – Get Report) are up by 0.96% to $24.15 at the start of trading on Tuesday morning, after the utility company asked the Washington D.C. mayor’s office to reconsider a $6.8 billion merger proposal with Exelon (EXC) .
The companies contend that the District of Columbia Public Service Commission did not explain the proper conditions needed to gain approval for the merger, while also noting that any deficiencies “can be easily cured,” according to Bloomberg.
The merger between D.C.-based Pepco and Chicago-based Exelon is part of an industry wide consolidation effort that has arisen amid falling energy prices and rising costs.
However, the DC PSC unanimously voted on August 25 not to approve the merger because the newly combined company would focus less on customers in the D.C. area.
Exelon had already received regulatory approval from Maryland, Delaware, New Jersey and Virginia, with the District being the last jurisdiction needed for the deal to go forward.
