NU and Nstar merger 'is progressing'
NU and Nstar have received a comprehensive merger agreement.
Negotiation techniques could have been helpful during the tie-up between Nstar and Northeast Utilities (NU), which have just achieved a comprehensive agreement relating to the merger from the US Office of Consumer Counsel and the Connecticut attorney general.
Substantial benefits for the environment and the firms' customers should be achieved when the enterprises join, NU claimed.
It will establish a preservation land trust within 12 months of the close of the merger, which will be irrevocable.
Furthermore, NU will collaborate with Connecticut's Department of Energy and Environmental Protection to examine ways in which NU land can be accessed by the public.
A tie-up between Nstar and NU will also create a stronger organisation that will be able to push down costs and increase levels of service in the long term, Nstar chief executive officer, chairman and president Thomas May said.
"With today's announcement we move one step closer to completing this important merger," he added.
Mr May had previously pointed out customers in Massachusetts will receive a number of benefits from the deal, including "a rate credit, plus a four-year distribution rate freeze".
Posted by Ken Hayes
Source: Joint press release, March 13th