Louisville, Ky. — PPL Corp. will buy power and natural gas units owned by E.ON U.S. for $6.7 billion in cash.
Louisville Gas and Electric Co. and Kentucky Utilities Co. will retain their existing headquarters and names, with their management teams intact.
The transaction will close at the end of this year. The acquisition includes the LG&E and KU delivers power to about 900,000 customers and gas to 318,000 customers. It can generate more than 8,000 MW of power.
The transaction is subject to approvals by the Kentucky Public Service Commission, the Virginia State Corporation Commission and Federal Energy Regulatory Commission. The companies anticipate completing the transaction by the end of the year, subject to regulatory approvals and customary closing conditions.
E.ON U.S., headquartered in Louisville, Ky., is a subsidiary of E.ON, the world’s largest investor-owned energy services provider. E.ON U.S. is a diversified energy services company that owns and operates LG&E, a regulated utility that serves 321,000 natural gas and 396,000 electric customers in Louisville and 16 surrounding counties, and KU, a regulated electric utility in Lexington, Ky., that serves 545,000 customers in 77 Kentucky counties and five counties in Virginia.
PPL Corp., headquartered in Allentown, Pa., owns or controls nearly 12,000 MW of generating capacity in the U.S., sells energy in key U.S. markets and delivers electricity to about four million customers in Pennsylvania and the U.K.