Duke Energy Purchasing Progress Energy for $13.7 billion

Duke Energy Corp DUK and Progress Energy Inc PGN reported that the boards of directors of both the companies have approved the merger plan. Under the agreement, DUK will purchase PGN for $13.7 billion, or $46.48 per share, representing a 4% premium to PGN' three-month price average. The deal is likely to close by the end of 2011. The combination is expected to add to DUK's earnings in the first year after closing. Jim Rogers, chairman, president and chief executive officer of Duke Energy said, "Our industry is entering a building phase where we must invest in an array of new technologies to reduce our environmental footprints and become more efficient." Rogers added, "By merging our companies, we can do that more economically for our customers, improve shareholder value and continue to grow.” DUK shares fell 0.51% to $17.70 in pre-market trading, while PGN shares gained 1.30% to $45.30 in pre-market trading. Read more from Benzinga's Company news.