Utility holding company PPL Corporation (PPL) disclosed that it has bagged Federal Energy Regulatory Commission’s (FERC) unanimous consent to acquire The Narragansett Electric Company from National Grid USA. The deal is expected to close in March 2022.

Notably, the transaction is subject to one last regulatory approval, which is from the Rhode Island Division of Public Utilities and Carriers. In the meantime, PPL is making efforts to ensure a seamless transition for Narragansett employees and customers by coordinating with National Grid.

In March 2021, PPL had announced its plans to acquire Narragansett Electric for $5.3 billion, which includes the assumption of about $1.5 billion of Narragansett Electric debt. (See PPL stock charts on TipRanks)

The President and CEO of PPL, Vincent Sorgi, said, "We're excited about the opportunity this acquisition presents for PPL to build one of the nation's most advanced grids, one that enables clean energy and supports the state's ambitious decarbonization goals. And we look forward to partnering with local leaders to help strengthen Rhode Island communities."

On September 17, Morgan Stanley analyst Stephen Byrd maintained a Hold rating on the stock and lowered the price target to $33 from $34. The new price target implies 16.1% upside potential from current level.

Based on 1 Buy and 6 Holds, the stock has a Hold consensus rating. The average PPL price target of $33.71 implies 18.6% upside potential from current levels. Shares have gained 6.5% over the past year.

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in PPL is currently Very Negative, as the cumulative change in holdings across all 3 hedge funds that were active in the last quarter was a decrease of 1.2 million shares.

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The post PPL Corporation Gets FERC Approval to Acquire Narragansett Electric appeared first on TipRanks Financial Blog.

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By: Radhika Saraogi
Title: PPL Corporation Gets FERC Approval to Acquire Narragansett Electric
Sourced From: blog.tipranks.com/ppl-corporation-gets-ferc-approval-to-acquire-narragansett-electric/
Published Date: Mon, 27 Sep 2021 07:44:05 +0000

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