NRG Energy said Sunday that it plans to acquire rival GenOn Energy in a $1.7 billion all-stock deal that would create the largest competitive power company in the U.S.
The combined company would have about 47,000 megawatts of power plants across the U.S. and have an enterprise value of $18 billion, the companies said. NRG President and Chief Executive David Crane will maintain his current positions at the combined company. GenOn Chairman and CEO Edward R. Muller will join the NRG board as vice chairman. Both companies had considered merger opportunities over the last few years as a way to cut costs and expand their footprints to better compete. Then, Mr. Muller said he contacted Mr. Crane this past spring to discuss a potential deal.
Merger
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Duke Energy and Progress Energy said Monday that they have accepted federal regulators’ conditions for completing their merger and hope to close the deal by Sunday. The Federal Energy Regulatory Commission ruled earlier this month that the utility companies could combine their operations, but only if they meet conditions designed to ensure that the company wouldn’t exercise undue influence over the power markets in the Carolinas. Duke and Progress are also working to secure approval from regulators in North Carolina and South Carolina by this weekend. The all-stock deal, announced in January 2011 and valued at about $26 billion, would create the nation’s largest utility. Duke, of Charlotte, N.C., serves 4 million customers in the Carolinas, Indiana, Ohio and Kentucky, operates wholesale power and renewable-energy businesses and has international operations in Brazil and elsewhere.
FERC approves stipulation and consent agreement with Constellation Energy Commodities Group http://ow.ly/1hVJiV
By Peter GardettFERC approves stipulation and consent agreement with Constellation Energy Commodities Group FERC
Though Duke and Progress Energy have been pursuing a merger for nearly a year, the Federal Energy Regulatory Commission stalled it significantly this Wednesday claiming it would not allow for fair competition in local electricity markets.
The decision, based on FERC’s 1996 Merger Policy Statement, comes at a time of increasing consolidation and specialization in the energy industry and will set a new standard for future merger proposals. Keep reading →
