FirstEnergy snaps up Allegheny in deal that creates power giant with 6.1M customers
By APThursday, February 11, 2010
Summary box: FirstEnergy to buy Allegheny
THE DEAL: FirstEnergy is buying rival power company Allegheny Energy in a deal that will create one of the largest power companies in the U.S. with customers in seven states from Ohio to New York.
WHAT’S IT WORTH: FirstEnergy, based in Akron, Ohio, will pay $4.7 billion in stock and assume $3.8 billion in debt for Allegheny, based in Greensburg, Pa.
WHY?: FirstEnergy says the acquisition will diversify its portfolio to include more power plants burning cleaner fuels, with tougher government restrictions on pollution expected.
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