Exelon Corporation (NYSE:EXC) has gone through a handful of processes to complete the acquisition of Pepco Holdings in the recent past. As per the reports, the regulators for District of Columbia rejected company’s proposed settlement related to this acquisition but offered another amended version, which may lead to a hassle-free execution of this deal in the near future.
Once executed, the combined entity (Exelon and Pepco) will make the largest electricity utility holding company in the United States.
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In a recent meeting, the utility regulators for the District of Columbia rejected Exelon’s settlement by 2-1. The settlement was related to an alternative proposed by Exelon against commission’s decision to reject the transaction in August 2015. Although the settlement was rejected, the committee came up with an amended version of this agreement. Exelon has enough time until March 11, 2016, to accept the terms and conditions mentioned in this agreement.
The meeting took place on Friday, and the share prices of both the companies reduced significantly before the result came out, only to recover back in the afternoon session. Different parties, including the D.C. government, utility players, and a third party association representing office and apartment owners, must sign this amended agreement to carry forward the transaction.
Before applying to D.C., Exelon had applied to other states where Pepco had its operations, such as Delaware, New Jersey, Maryland and Virginia, and received a positive response from regulators of all the areas instantly. It’s the first time when the company is facing so many issues in getting the approval.
The senior management team of the company looks forward to getting the approval as soon as possible. One of its spokespersons, Paul Elsberg, said that it’s tough to say anything at this moment. The team of experts will go through the amended version of the agreement before Exelon could comment on future prospects. Details of company’s decision will be announced in near future.