Asia Bizz: Northeast Utilities To Acquire NSTAR In A Step To Create One Of The Largest Utilities Company In The US
Northeast Utilities will be acquiring NSTAR, by presenting it $9.5 billion all stock deal, in a step to create on of the biggest utilities company in the US. As per the deal Northeast will be exchanging some 1312 common shares of it’s company for each share of NSTAR. This is one of the biggest deals to take place in the utilities companies in the US.
The ratio rate of the shares will be based upon the average rate calculated of the past 20 trading days. During this process it will not represent any premium to NSTAR, the company told the media. Northeast Utilities Headquarters is based in Berlin, Connecticut.
After the completion and acquisition of the company, Northeast will be operating six electric and gas utilities and would be providing services to almost 3.5 million customers. The companies have decided to spend around $9 billion in the development of the region’s energy infrastructure in the next five years. The officials have stated that it would be important for both the companies as this would help them in long term net savings.