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