Exelon to Acquire Deere’s Wind Energy Unit for $900 Million (EXC, DE)

By Dividend.com Staff,

Shutterstock photo

Electricity generator Exelon Corporation ( EXC ) on Tuesday said it would buy Deere & Company's ( DE ) Renewables unit, which operates several wind farms, for $900 billion.

Exelon noted it would add 735 megawatts of wind energy and 230 megawatts under development via the acquisition. It also said it would use debt to pay for the deal.

Meanwhile, Deere will take an aftertax charge of $25 million for the fourth quarter as past of the sale. "As Deere sharpens its own strategic focus, we have concluded that the company's resources are best invested in growing our core equipment businesses around the world. We have chosen to place the wind portfolio with Exelon in part due to its demonstrated leadership in the energy industry," said Deere CEO Samuel Allen in a statement.

Both Exelon and Deere shares were mostly flat in premarket trading Tuesday.

The Bottom Line
Shares of EXC have a 5.18% dividend yield, based on last night's closing stock price of $40.52.
Shares of DE have a 1.91% dividend yield, based on last night's closing stock price of $62.98.

Neither Exelon Corporation ( EXC ) nor Deere & Company ( DE ) are recommended at this time, holding Dividend.com DARS™ Ratings of 3.2 and 3.4 out of 5 stars, respectively.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: DE , EXC

More from Dividend.com



Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com