US nuclear power generator Exelon Corp announced Wednesday that it has reached an agreement to buy power company Pepco Holdings for $6.83 billion in cash.

Pepco, the main electric and gas provider for the US states of New Jersey, Delaware and the capital of Washington, was valued at $27.25 per share, according to a statement by Exelon.

The figure is a 20 percent premium over Pepco's closing price Tuesday on the New York Stock Exchange.

Combined the two companies would serve around 10 million customers; Exelon already provides electricity and natural gas to more than 6.6 million clients in the states of Maryland, Illinois and Pennsylvania.

Closing of the deal, which still must receive a green light from regulatory and local authorities, should be completed in the second or third quarter of 2015, the statement said.

"This combination provides significant benefits for all of our stakeholders, including customers, employees and shareholders," Pepco CEO Joseph Rigby said in the statement.

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