CHICAGO -- Unicom Corp., parent of Commonweath Edison Co., is merging with PECO Energy Co. of Pennsylvania to create what the companies say will be the nation's largest electric utility.
The new company under the deal announced Thursday will also be one of the nation's largest nuclear power generators.The companies said the merger could result in the loss of about 1,100 jobs, or about 5 percent of the combined work force of 22,500 people.
The combined company will have about 5 million customers, total revenues of $12.4 billion and a market value of $15.2 billion.
Shareholders of both companies will be offered the option of cash or stock in the new company. The deal still needs shareholder and regulatory approval.
The planned merger terms value Unicom shares at nearly $8.2 billion.
PECO Energy shares closed Wednesday at $38.125, down 81.25 cents, and Unicom closed at $37.0625, up 12.5 cents, both on the New York Stock Exchange.
After a transition period during which they will share control of the new company, Unicom chief executive John Rowe will become CEO of the new company and PECO CEO Corbin McNeill Jr. will serve on the board of directors.
ComEd has suffered a string of high-profile power outages in recent months and has said it will spend more than $1.5 billion over the next two years to improve its distribution system.
Chicago-based Unicom provides electric service across northern Illinois, serving about 3.4 million customers. It also has 10 nuclear generating units at five sites.
PECO Energy, based in Philadelphia, serves 1.5 million electric customers and 400,000 gas customers in the five-county Philadelphia region.