NRG and GenOn announce merger
GenOn and NRG have revealed they intend to merge.
GenOn and NRG have revealed they are to combine their operations.
Following the use of merger and acquisition consultants to help in the tie-up, the joined firm would realise annual free cash flow benefits of $300 million (£193 million) over 2014, while establishing a net combined capacity of 47,000 MW.
The enterprise would become the US' largest competitive power generator, with a value of $18 billion and concentrations of assets in the west, Gulf Coast and east.
It should enable the company to minimise a number of liquidity and interest costs, while establishing other efficiencies to its balance sheet.
Chief executive officer and president of NRG David Crane will remain in this role when the merger takes place.
"This combination ushers in a new era of scale, scope, and market and fuel diversification in the competitive power industry," he declared.
However, Fitch Ratings responded to the announcement by placing GenOn and NRG on Rating Watch Negative.
Posted by David Gleck
Source: Combined press release, July 22nd