Duke Energy Corporation

BGE parent company to acquire D.C.-based Pepco

BGE parent company to acquire D.C.-based Pepco

Baltimore Gas and Electric Co.'s parent struck a $6.9 billion deal Wednesday to acquire Pepco Holdings Inc., 16 years after BGE walked away from a protracted effort to buy its southern neighbor.

Chicago-based Exelon Corp.'s purchase of Pepco Holdings Inc. in Washington would extend its presence substantially in both Maryland and the Mid-Atlantic. But analysts warned that this second attempt at combining Maryland's two biggest utilties could be difficult to consummate because it requires approval from regulators in three states and D.C.

To make the deal more palatable, Exelon turned to its playbook for the successful 2012 acquisition of BGE owner Constellation Energy,...