Duke Energy Corp. Buys Progress Energy Inc., Forms America's Largest Utility

01/10/2011 08:53 am ET | Updated May 25, 2011

Duke Energy Corp. is buying Progress Energy Inc. to create what will be America's largest utility company.

Duke Energy paid more than $13 billion in stock and will now serve more than 7 million customers, according to several reports.

AP lays out the agreement:

The transaction announced Monday by the two North Carolina companies would create a business with about 7.1 million electric customers in North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio.

It would also have a sizable nuclear energy business.

Under the agreement, Progress Energy's shareholders will receive 2.6125 shares of common stock of Duke Energy in exchange for each share of Progress Energy common stock.

Based on Duke Energy's closing share price on Friday, Duke said Progress Energy shareholders would get stock worth about $46.48 per share, or $13.7 billion.

Dealbook notes that this is the latest in a wave of utility deals "as companies seek to cut costs and combat falling prices by increasing their customer bases." According to Thomson Reuters data, energy and power mergers accounted for 20 percent of announced takeovers in 2010.

Read more details of the merger at Bloomberg-Businessweek here.