Is Exelon Buying Pepco a Move in the Right Direction?

Exelon  is already the biggest utility company in the U.S., and it has agreed to buy Pepco for $6.8 billion.

But Fool contributor Tyler Crowe and energy and materials analyst Joel South say Exelon didn't make the purchase to make an even larger footprint in the utility space; it was more to diversify its holdings there. Pepco also gives Exelon stable revenue in a regulated -- and therefore less volatile -- business, even if the overall income needle won't move too much from this purchase. 

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The article Is Exelon Buying Pepco a Move in the Right Direction? originally appeared on Fool.com.

Joel South has no position in any stocks mentioned. Tyler Crowe has no position in any stocks mentioned. You can follow them on Twitter @TMFEnergy and @TylerCroweFool, respectively. The Motley Fool recommends Exelon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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