Milwaukee-based Wisconsin Energy Corporation (WEC) and Chicago’s Integrys Energy Group Inc. (TEG) have reached a definitive agreement whereby Wisconsin Energy will purchase Integrys Energy in a deal valued at slightly over $9 billion.
Integrys Energy shareholders will receive $18.58 a share plus 1.128 shares of Wisconsin Energy under the deal. Wisconsin Energy stock closed down nearly 3.5% yesterday to $45.27 per share, while Integrys Energy shares jumped over 12% on the news, closing the session at $68.35.
Wisconsin Energy is one of the largest energy and utility transmission companies in the state of Wisconsin. Its generates electricity, but also supplies natural gas. The company provides its services primarily to Wisconsin Electric Company, which delivers energy to end users.
Both Wisconsin Energy and Integrys Energy have a combined 50% interest in ATC, an electric transmission company that operates in multiple states in the Mid-West, including Michigan, Minnesota, Wisconsin and Illinois. The deal between the two will allow the new entity – WEC Energy Group Inc. – to attain synergies in operations across these territories and become the largest natural gas supplier in the Mid-West, as well as the entire country.
Though the deal has already been finalized, it still needs to clear certain legal hurdles. Integrys Energy is currently being investigated by WeissLaw LLP, a firm that specializes in class-action lawsuits, over allegations that it acted against the best interests of shareholders or left possible value on the table with the deal.
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