NRG ENERGY and GenOn Energy Inc said last night they had agreed to combine themselves in a stock-for-stock tax-free transaction that will pay GenOn shareholders a premium of 21 per cent.
The two energy companies said the combination would create the largest competitive US generator with a fleet of 47,000 megawatts, with assets concentrated in the East, Gulf Coast and West of the country.
The transaction is expected to close in the first quarter of 2013, the companies said in a joint statement.
GenOn shareholders will receive 0.1216 share of NRG common stock in exchange for each GenOn share, representing a premium of 20.6 per cent based on NRG’s closing share price on July 20 and valuing the deal at $1.7bn.
GenOn shareholders will own around 29 per cent of the combined company.
City A.M. Reporter