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According to Reuters, Duke Energy (DUK) is closing in on a deal to buy utility holding company Progress Energy Inc. (PGN) for more than $13 billion. The deal would increase Duke’s size by 36% and increase the pricing power of the combined utility companies.

Duke would be able to expand its operations in North and South Carolina and gain a foothold into the Florida utilities market. Duke would gain access to22,000 megawatts of power. This looks like a good move for Duke as revenue growth is tepid and the company is looking to increase its revenue.

The deal isn’t really accretive to shareholders since Progress Energy is already valued at $13 billion. The new company would have a market cap of $36 billion and an enterprise value of $64 billion.

Dividend investors may also find the new company quite attractive as Progress and Duke were both known for their generous dividend yields. Dividend investors love the utilities industry because the sector can make money off of the stable earnings and large free cash flows. These stocks have maintained their dividends even during the economic swoon of the past few years.

Duke Energy is currently yielding 5.5% and Progress Energy has a yield of 5.7%.

Source: A Pending Merger for the Utility Industry?