Utility companies Westar Energy Inc (WR.N) and Great Plains Energy Inc (GXP.N) said they amended terms of their previous merger agreement to form a company with a combined equity value of about $14 billion.
Under the revised terms, Westar Energy shareholders will get one share of the new company for each share, while Great Plains shareholders will get 0.5981 shares for each share they own.
The companies said on Monday the deal would not have any premium, transaction debt or exchange of cash.
The new company will provide electricity services to about 1 million Kansas customers and nearly 600,000 customers in Missouri, the companies said on Monday.
Great Plains offered to buy Westar Energy for about $8.6 billion last year, but ran into regulatory trouble due to the structure of the deal.
The Kansas Corporation Commission (KCC) said in April while it was happy with the strategic rationale behind the tie-up, it was concerned by financial aspects of the deal including the amount of debt being used to facilitate it.
"We are pleased to announce a revised agreement with Westar Energy that we believe directly addresses regulatory concerns with our originally-proposed transaction," said Terry Bassham, chief executive officer of Great Plains Energy.
The transaction is expected to close in the first half of 2018.