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Risks
1. Market Concentration Risk: There is a risk that the merger would substantially increase the market control of Exelon, potentially creating a monopoly and reducing competition which may lead to higher prices for consumers.
2. Regulatory Risk: Federal and state regulators may reject the proposed deal, due to competitive and antitrust concerns, or require changes that would hinder the deal and/or reduce its value.
3. Credit Risk: Exelon may take on additional debt to finance the deal, changing its credit profile, and creating a risk of default.
4. Strategic Risk: Exelon may not be able to realize the expected strategic benefits from the combined entity, resulting in poorer performance than anticipated.
5. Reputational Risk: Exelon may face reputational damage if it is perceived as trying to take advantage of Pepco, or if the merger results in unhappy customers or higher prices for consumers.