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NRG Energy agrees to buy most of Edison Mission for $2.64 billion

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NRG Energy Inc., the largest independent U.S. electricity producer, agreed to buy most of the assets of Edison International’s bankrupt Edison Mission Energy for $2.64 billion to expand its coal and wind holdings.

The purchase price consists of about 12.7 million NRG shares, with the balance to be paid in cash on hand, NRG said. About $1.06 billion is expected to be on hand at Edison Mission on closing.

NRG shares fell 44 cents, or 1.5%, to $28.86 on Monday.

Edison Mission operates coal-burning plants with a capacity of 4,300 megawatts, enough to power about 3.4 million average homes. The subsidiary of Rosemead-based Edison International also owns about 1,700 megawatts of wind energy and runs heat-and-power plants at refineries owned by Chevron Corp. It filed for bankruptcy in December because of a collapse in power prices and rising pollution control costs.

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“Virtually 100% of their assets, their particular expertises and the balance of their technologies” complement NRG’s assets,” NRG Chief Executive David Crane said.

NRG is picking up Midwestern coal plants that can be added into its plants in other U.S. regions and could provide additional revenue if natural gas prices rebound, said Travis Miller, an analyst for Morningstar Inc. “We think that NRG can integrate these units and they didn’t pay very much from them,” Miller said.

NRG will assume about $1.27 billion of Edison Mission debt, the companies said.

The deal needs Bankruptcy Court approval as well as approval from the Federal Energy Regulatory Commission, the Federal Trade Commission, the U.S. Department of Justice and the Public Utility Commission of Texas, NRG said.

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