US power producers NRG Energy, GenOn Energy to merge in $1.7-bn all-stock deal
23 July 2012
NRG Energy yesterday said that it has struck a $1.7-billion all-stock deal to buy rival GenOn Energy Inc in order to create the largest US independent power producer.
Under terms of the deal, GenOn Energy shareholders will get 0.1216 of NRG Energy share for each of their GenOn shares, representing a 21-per cent premium over GenOn's 20 July closing price.
NRG holders will own 71 per cent of the new company, and GenOn holders the remaining 29 per cent. The merged company will have its financial headquarters in Princeton, New Jersey; while its operations headquarter will be Houston, Texas,
The combined company, which will retain the name of NRG Energy, would have about 47,000 megawatts of power plants across the US, and have an enterprise value of $18 billion, the companies said in a joint statement.
Houston-based GenOn owns more than 22,500 megawatts of natural gas, coal and oil-fuelled power plants in Maryland, New Jersey, New York, Pennsylvania, Massachusetts, California, Mississippi and other states.
NRG operates more than 25,500 megawatts of nuclear, natural gas and coal-fired power plants in Texas, New York, Connecticut, Louisiana, California and other states.