Con Ed May Buy Northeast Utilities
NEW YORK (AP) _ Consolidated Edison Inc. has agreed to buy Northeast Utilities for $3.3 billion in cash and stock, The New York Times reported today.
The deal will give Con Edison access to cheaper electricity and raise its base of 3 million customers to 4.7 million, the Times reported, citing sources familiar with the talks.
It is Con Edison’s biggest move to retain customers and make itself more competitive as New York and other states deregulate their utility markets.
Northeast, based in Berlin, Conn., is the largest electric utility in New England, serving customers in Connecticut, Massachusetts and New Hampshire.
Under terms of the deal approved by the boards of both companies Tuesday, Con Edison would pay $25 a share in cash and stock for the outstanding shares of Northeast, and would pay an additional $1 a share if units 2 and 3 of the Millstone nuclear plant in Connecticut are sold.
Eugene McGrath, chairman and chief executive of the New York City-based Con Edison, would hold those positions in the new company. Michael Morris, the president and chief executive of Northeast, would become president of the new company, the Times said.