Merger Acquisition Newsroom

Divestitures In $16 Billion Merger Of Exelon Corp. And PSEG

 The Department of Justice announced today that it will require Exelon Corporation (Exelon) and Public Service Enterprise Group Incorporated (PSEG) to divest six electricity generating plants--two in Pennsylvania and four in New Jersey-- in order to proceed with their $16 billion merger. The Department said that the transaction, as originally proposed, would have caused higher prices for wholesale electricity, ultimately increasing prices paid by millions of electricity consumers in the mid-Atlantic region.

The Department's Antitrust Division filed a civil lawsuit today in U.S. District Court in Washington, D.C. to block the proposed transaction. At the same time, the Department filed a proposed consent decree that, if approved by the court, would resolve the Department's competitive concerns and the lawsuit.

"Electricity is essential to the everyday lives of consumers and business," said Thomas O. Barnett, Assistant Attorney General for the Antitrust Division. "These divestitures will ensure that customers continue to benefit from competitive markets for this critical product."

According to the complaint, the merger would create one of the largest electricity companies in the United States and combine the assets of two of the largest competitors in the mid-Atlantic region. Together, the companies would own nearly half of the electricity generating capacity in the densely populated area encompassing eastern Pennsylvania, New Jersey, the District of Columbia, and parts of Maryland and Virginia. The combination of their assets would enhance the incentive and ability of the merged firm to raise wholesale electric prices. Read more at justice.gov