Dive Brief:
- Regulators in Minnesota last week approved Wisconsin Energy Corp.'s bid to acquire Integrys Energy, forming a top-10 gas distribution utility and one of the nation's largest investor-owned energy delivery companies.
- Regulators in Wisconsin, Michigan, Illinois and at FERC also had to approve the $9.1 billion deal.
- The new company, WEC Energy Group, will provide electricity and natural gas to 4.4 million customers.
Dive Insight:
After months of negotiating different ratepayer benefits in varying states, Wisconsin Energy and Integrys have completed their merger, combining their six utility brands: We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, and Minnesota Energy Resources.
In a statement, company officials said the new entity – WEC Energy Group – will operate as the eighth largest gas distribution company in the country and one of the 15 largest investor-owned utility systems. WEC will locate its major operating headquarters in Milwaukee, Green Bay and Chicago.
"The new era that begins today has its roots in world-class customer service and exceptional shareholder value," Chairman and CEO Gale Klappa said in a statement. "Our goal in combining these strong Midwestern companies is to build a leader in the energy industry that will thrive for decades to come."
The company also announced three former Integrys board members – William Brodsky, Albert Budney Jr. and Paul Jones – will join the nine Wisconsin Energy board members to form the new company's board of directors.
Now that the companies are combined, shares of Integrys common stock will be delisted and cease trading on the New York Stock Exchange before trading opens today. Shareholders of Integrys will receive a mix of cash and stock in exchange: 1.128 shares of Wisconsin Energy Common stock and $18.58 in cash for each share of Integrys common stock they held.
