Duke Energy Corp. (DUK: Quote) confirmed the closing of its prior announced merger with Progress Energy Inc. (PGN: Quote), effective July 2, 2012. The new company would be known as Duke Energy headquartered in Charlotte, with substantial operations in Raleigh, N.C. Duke Energy would trade on the New York Stock Exchange under the symbol DUK. Pursuant to the merger deal, Progress Energy has become a wholly owned direct unit of Duke Energy.
In addition, Duke Energy announced that the newly constituted board has named Jim Rogers as president and chief executive of the combined company, effective immediately. Also, Rogers would maintain his responsibilities as chairman of the company's board. Bill Johnson has resigned as president and chief executive of the combined company, by mutual agreement.
On a standalone basis, Duke Energy had an adjusted earnings per share guidance range of $1.40 - $1.45 for 2012. Due to the effect of the 1-for-3 reverse stock split, which was completed related to this merger transaction, this guidance range is the equivalent of $4.20 - $4.35 per share. The combined company continues to target a 2012 adjusted earnings per share range of $4.20 - $4.35.
The new Duke Energy has nearly $49 billion in market capitalization, total assets of more than $100 billion, and 7.1 million electric customers in the Carolinas, Florida, Indiana, Kentucky and Ohio. The regulated utilities would include a higher proportion of Duke Energy's post-merger business mix.
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by RTT Staff Writer
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