US energy producers join forces

Mirant agreed to take over rival RRI Energy, yesterday, creating one of the largest US independent power producers and cutting costs as they deal with weak electricity prices that have challenged the entire industry. The companies said they will combine to create GenOn Energy, a new company with value of around $3bn (£1.9bn). After the all-stock, tax-free transaction, Mirant shareholders will own about 54 per cent of GenOn’s equity, while RRI’s shareholders will own about 46 per cent.