Northeast Utilities (NYSE: NU) and NSTAR (NYSE: NST) announced
today that their merger is complete, creating one of the nation’s
largest utilities with six regulated electric and natural gas
utilities serving 3.5 million customers in three states. The newly
merged company will continue to be called Northeast Utilities and
NSTAR will become an NU subsidiary in Massachusetts. NU will be
more diverse and better positioned to support economic growth and
renewable energy opportunities in New England.
Northeast Utilities President and CEO
Thomas J. May (Photo: Business Wire)
Upon the closing of the merger, Thomas J. May became president
and CEO of Northeast Utilities, and Charles W. Shivery became
non-executive chairman of NU’s board of trustees. The combined
company will have dual headquarters in Boston, MA, and Hartford,
CT.
“Today our two great companies become one. This merger puts us
in a unique position to provide better service levels, support our
communities and employees, and take the lead on green programs and
smart technologies that protect the environment,” said May. “This
is an exciting time in the energy industry and together we have the
scale, talent and financial resources to meet the complex and
demanding energy needs of our customers across New England.”
Also effective today, the NU board of trustees now consists of
14 members including seven designees of NU and seven designees of
NSTAR. The NU trustees who will continue to serve on the board are
Mr. Richard H. Booth, Mr. John S. Clarkeson, Ms. Cotton M.
Cleveland, Mr. Sanford Cloud, Jr., Mr. Kenneth R. Leibler, Mr.
Charles W. Shivery and Mr. Dennis R. Wraase. The new NU trustees
designated by NSTAR are Mr. James S. DiStasio, Mr. Francis A.
Doyle, Mr. Charles K. Gifford, Mr. Paul A. LaCamera, Mr. Thomas J.
May, Mr. William C. Van Faasen and Ms. Frederica M. Williams.
Customer Benefits
With a deep commitment to building on the shared companies’
history of delivering great service to New Englanders, NU has plans
to make significant investments in energy infrastructure over the
next five years. In addition, customers will share in the estimated
$780 million merger savings produced over the next ten years. These
important long-term savings will come as a result of efficiencies
achieved over time, primarily through process improvements,
consolidation of systems and drawing on best practices from both
companies. Customers can expect to interact with their individual
utility as they always have, with the same names, addresses and
websites they currently utilize.
“As a stronger company, we are better positioned with the
resources necessary to deliver outstanding reliability and
service,” said May. “Our customers will not only share in the
financial savings our combined company will achieve, they will also
benefit from significant investments in upgrades to our
infrastructure.”
As a result of merger-related settlements in Massachusetts and
Connecticut, NU has guaranteed benefits for customers that include
rate credits, rate freezes and continued civic engagement. The
company also pledges further environmental commitments to renewable
energy, energy efficiency and electric vehicle development.
One of New England’s largest, local employers
As a locally controlled energy company, the newly merged company
creates a strong platform for job stability and career
opportunities for its 9,000 employees. The merger provides greater
resources for storm restoration, as well as for infrastructure
improvements and safe and reliable electric service.
“We are keenly aware of the crucial role our employees will
continue to play in the success of our company,” May added. “We
have a dedicated team of talented, hard-working men and women that
is up to the task of building upon our strengths and tackling the
future challenges of our rapidly evolving industry.”
NU will continue to support the communities it serves and will
maintain funding for vital civic and philanthropic organizations
across its combined service areas.
Transaction information
In accordance with the merger agreement, NSTAR shareholders will
receive 1.312 Common Shares of NU for each Common Share of NSTAR
previously held. Northeast Utilities, with a post-close market
capitalization of about $12 billion, will operate four electric
distribution and transmission companies, as well as two gas
distribution companies in Massachusetts, Connecticut and New
Hampshire. On a pro-forma basis, the combined company would have
annual operating revenues of $7.4 billion, based on results for the
12 months ended December 31, 2011. Per the merger agreement,
effective for its second quarter dividend payment, NU is expected
to increase its current quarterly dividend from $0.29375 to
approximately $0.3425 per common share.
Media briefing
NU President and Chief Executive Officer Tom May will conduct a
telephone briefing with the news media today at 2 pm EDT to discuss
the merger closing. To listen to a live broadcast of the briefing,
go to http://edge.media-server.com/m/p/hmknw5tp/lan/en.
About NU
Northeast Utilities (NU) operates New England’s largest energy
delivery company. NU and its companies are committed to safety,
reliability, environmental leadership and stewardship, as well as
expanding energy options for its more than 3 million electric and
natural gas customers in Connecticut, Massachusetts and New
Hampshire. Headquartered in Hartford, CT, and Boston, MA, NU is a
Fortune 500 company traded on the New York Stock Exchange under the
symbol NU. Learn more about NU and its family of companies at
nu.com.
Information Concerning Forward-Looking
Statements
In addition to historical information, this communication may
contain a number of “forward-looking statements” as defined in the
Private Securities Litigation Reform Act of 1995. Words such as
anticipate, expect, project, intend, plan, believe, and words and
terms of similar substance used in connection with any discussion
of future plans, actions, or events identify forward-looking
statements. Forward-looking statements relating to the merger
include, but are not limited to statements about the benefits of
the merger involving NSTAR and Northeast Utilities, including
future financial and operating results, Northeast Utilities’ plans,
objectives, expectations and intentions, and other statements
relating to the merger that are not historical facts.
Forward-looking statements involve estimates, expectations and
projections and, as a result, are subject to risks and
uncertainties. There can be no assurance that actual results will
not materially differ from expectations. Important factors could
cause actual results to differ materially from those indicated by
such forward-looking statements. With respect to the merger, these
factors include, but are not limited to the risk that the
businesses will not be integrated successfully; the risk that the
cost savings and any other synergies from the transaction may not
be fully realized or may take longer to realize than expected;
integration efforts making it more difficult to maintain
relationships with customers, employees or suppliers; the diversion
of management time on post-merger issues; the effect of future
regulatory or legislative actions on the companies; and the risk
that the credit ratings of the combined company or its subsidiaries
may be different from what the companies expect. These risks, as
well as other risks are more fully discussed in the “Risk Factors”
section of NSTAR’s and Northeast Utilities’ most recent Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and other
NSTAR and Northeast Utilities reports filed with the Securities and
Exchange Commission (the “SEC”) and available on the SEC’s website
at www.sec.gov. Forward-looking statements included in this
document speak only as of the date of this document and we do not
undertake any obligation to update its forward-looking statements
to reflect events or circumstances after the date of this
document.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50232738&lang=en
Nstar (NYSE:NST)
Historical Stock Chart
Von Dez 2024 bis Jan 2025
Nstar (NYSE:NST)
Historical Stock Chart
Von Jan 2024 bis Jan 2025
