New York, NY, United States (4E) – NRG Energy Inc. announced that it will acquire most of the assets of Edison International’s struggling unit Edison Mission Energy in a $2.64bn, a move meant to expand NRG’s presence in the coal and wind energy sector.
The transaction price comprises around 12.7 million NRG shares with the remainder be paid using cash on hand, according to the Princeton, New Jersey-based NRG in a statement on Friday. Under the deal, Edison Mission is expected to have around $1.06bn on hand, expected in the first quarter next year.
Edison Mission runs coal-burning plants that have a capacity of 4,300 megawatts, enough power to electrify 3.4 million average homes, according to data by the Energy Department. It also operates wind-driven generation with around 1,700 megawatts, and owns combined heat-and-power plants at Chevron Corp.-owned refineries.
NRG Chief Executive David Crane said in a statement that virtually all Edison mission’s assets, their particular expertises and the balance of their technologies deployed complement the assets of NRG.
The biggest independent electricity producer in the U.S. will assume Edison Mission’s nearly $2.1bn debt, according to company spokesman Daniel Keyes. About $1.27bn of that amount will be non-recourse to NRG.
Edison Mission said it will ask a Chicago bankruptcy judge for the deal’s approval. The statement said that a hearing is set “on or before” Oct. 25.