Duke Energy has reached a deal to buy Progress Energy in a $26 billion transaction that would create the nation's largest utility company and cost the Triangle its largest publicly traded concern. Duke Energy CEO Jim Rogers is to be executive chairman of the combined company, while Progress Energy CEO Bill Johnson would serve as president and CEO. The acquisition, announced Monday morning, is an all-stock transaction in which Progress Energy (NYSE:PGN) shareholders would receive 2.6125 shares of common stock of Duke Energy (NYSE: DUK) in exchange for each Progress share. The deal values Progress Energy shares at $46.48 each, or $13.7 billion in total equity value, based on Duke Energy's closing share price on Jan. 7. Duke also would assume about $12.2 billion in debt, pushing the total value of the deal to $26 billion. The transaction price represents a 7.1 percent premium to the unaffected closing stock price of Progress Energy on Jan. 5, 2011 and a 3.9 percent premium to the closing stock price of Progress Energy on Jan. 7, 2011. The transaction price also represents a 6.6 percent premium to the average closing stock price of Progress Energy over the last 20 trading days ending Jan. 5, 2011, and a 6.4 percent premium over the last 20 trading days ending Jan. 7, 2011. Following completion of the merger, officials anticipate Duke Energy shareholders would own approximately 63 percent of the combined company and Progress Energy shareholders would own approximately 37 percent on a fully diluted basis.