(Reuters) - Exelon Corp said it plans to separate its electric and gas utilities business from its power generation and customer-facing energy businesses into two publicly traded companies, as it looks to spinoff its clean energy businesses into a new firm.
The divestment, announced on Wednesday, comes as energy companies around the world are being pressured by activists, banks, investors and some governments, to shift away from fossil fuels and into renewable and alternative energy sources to limit green house gas emission and climate change.
Exelon Utilities will include the company’s six regulated electric and gas utilities, delivering electricity and natural gas to more than 10 million customers.
Meanwhile, Exelon Generation will be the largest supplier of clean energy, backed by more than 31,000 megawatts of generating capacity of nuclear, wind, solar, natural gas and hydro assets, the company said.
Exelon Corp shareholders will retain their current shares of Exelon stock and receive a pro-rata dividend of shares of the new company’s stock in a deal that is expected to be tax-free to Exelon and its shareholders.
Exelon will continue to be led by Chief Executive Officer Chris Crane and the existing management team until the separation is complete. The split is expected to be completed in the first quarter of 2022.
Reporting by Arathy S Nair in Bengaluru; Editing by Amy Caren Daniel