On July 22, 2012, NRG Energy, Inc. (“NRG”) and GenOn Energy, Inc. (“GenOn”) announced that the two companies intend to merge and operate under the name NRG Energy. The companies claim that the merger, if completed, will create the nation’s largest competitive power generation company with approximately 47,000 MW serving the east, west, and Gulf Coast regions, and lead to $300 million in annual benefits in its first full year of operations.
If the merger is completed, David Crane, NRG President and CEO, will retain his positions with the combined company, while GenOn Chairman and CEO, Edward Muller, will serve as Vice Chairman of the Board of Directors. Additionally, NRG shareholders will own seventy-one percent of the combined company, while GenOn shareholders will own the remaining twenty-nine percent. The companies also announced that the new Board of Directors of the combined company will be comprised of twelve members from the NRG Board and four members from the GenOn Board.
The merger is subject to approval of the shareholders of both companies, FERC, the New York Public Service Commission and the Public Utility Commission of Texas. In addition, the companies will submit pre-merger notifications to the Department of Justice and the Federal Trade Commission, as required by law, and a notice of the merger to the California Public Utilities Commission and the Nuclear Regulatory Commission.
NRG and GenOn hope to finalize the merger by the first quarter of 2013. A link to the press release announcing the merger is available here. A copy of the transaction fact sheet is available here.