Pennsylvania Power Co. To Buy Kentucky Utilities, LG & E

Louisville, Ky. -- – A Pennsylvania-based power company will acquire the parent company of two major utilities in Kentucky for $6.7 billion in cash. PPL Corporation announced late Wednesday that it is buying E.ON US, the parent of Louisville Gas & Electric and Kentucky Utilities.

Louisville Mayor Jerry Abramson says he's received assurances from PPL that no jobs will be eliminated as a direct result of the purchase.

"LG & E's corporate headquarters will remain in Louisville and the company will retain its senior leadership in place. PPL has agreed to keep the headquarters in Louisville for a minimum of 15 years."

KU's headquarters will remain in Lexington.

Abramson says local and state officials secured financial backing to bid on the properties, but couldn't meet parent company E.ON's requirement for a so-called "break-up fee," tens of millions of dollars that would be forfeited if the deal fell through.