July 1, 2005
Duke Energy looks for synergy in Cinergy deal
Duke Energy Corp. will pay $9 billion to pick up Cinergy Corp., in a move that will create an energy company with about 5.4 million retail customers and more than $70 billion in assets.
The combined company will have about $27 billion in annual revenue and $1.9 billion in annual net income. It will own or operate about 54,000 megawatts of electric generation domestically and internationally.
Charlotte, N.C.-based Duke Energy has holdings in natural gas and electric businesses as well as a real estate portfolio. Cinergy, based in Cincinnati, operates Cincinnati Gas & Electric Co., Union Light, Heat & Power, and PSI Energy.
The two companies currently employ 29,350, but cutbacks will occur, and the combined companies will lose about 1,500 people, primarily through attrition, early retirements, and other severance programs.
Paul M. Anderson, Duke Energy chairman and chief executive, will be chairman of the combined company. Cinergy Chairman, President, and Chief Executive James E. Rogers will become president and chief executive.
Anderson said the acquisition makes the combined company's gas and electric divisions large enough to stand alone. The deal also allows Duke to complement its gas-fired operations in the Midwest with Cinergy's coal-fired plants.