Report: Northeast Utilities buying NSTAR for $4.17 billion

October 18, 2010 — New England’s Northeast Utilities will buy Massachusetts-based NSTAR in an all-stock deal worth $4.17 billion, according to reports.

The deal is to create a utility that will provide utility service to roughly half of New England’s gas and electric customers.

When and if the agreement goes through, Northeast Utilities will operate six regulated gas and electric utilities in Massachusetts, New Hampshire and Connecticut with about 3.5 million customers.

According to reports, sources from both utilities said the company created in the proposed merger would spend about $9 billion in five years boosting the energy infrastructure in the area.

The two companies are already investing $1.1 billion for new transmission lines into Quebec to tap the Canadian province’s electricity generated from hydroelectric sources.

The agreement is subject to all the applicable regulatory approvals. The companies anticipate this process to take up to a year or possibly less.

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