DTE Energy, MCN Energy Complete Merger
Positioning itself to become a major regional energy player, DTE Energy last Thursday announced the closing of its approximately $3.9 billion merger with MCN Energy Group. The completion of the merger finishes a process that kicked off in October 1999 (see NGI, October 11, 1999).
"We can now proceed full steam with the knowledge that the creation of a regional energy powerhouse will be a reality," said Anthony F. Earley Jr., DTE Energy chairman and CEO. "We're excited about the future, and we know our customers, employees and shareholders share that excitement," he added.
According to DTE Energy, customers of the company's two principal operating subsidiaries, Detroit Edison and Michigan Consolidated Gas Co., will not see an immediate impact in services as a result of the merger. Rather, the merger benefits will become apparent over the next two years as customers of both utilities ultimately will benefit from, among other things, one bill for both gas and electric service.
The merger was consummated after DTE Energy acquired all outstanding shares of MCN Energy Group for a combination of cash and shares of DTE Energy common stock. DTE Energy will remain headquartered in Detroit and now has more than 11,300 employees, who serve 2.1 million electric customers and 1.2 million natural gas customers in Michigan. By late summer, the company expects to see about 800 employees take advantage of an April early retirement option that is intended to allow the company to begin realizing synergies achieved by the merger.
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