NRG Energy offered $6.2 billion by Exelon

NRG Energy Inc. who own and operate power generators has been offered $6.2 billion in stock from Exelon, if the deal goes through Exelon will have created the biggest US power company in terms of assets.

NRG spokesperson said that the proposal that Exelon have offered will be reviewed by NRG board of directors and they will make decision on the appropriate action to take.

The proposal that was announced on Sunday stated Exelon have offered 0.485 Exelon shares for each NRG share.

Exelon’s stock closing price on Friday October 17 was $54.50 which would mean the transaction would be 37 percent premium over NRG’s closing price on the same day which would value it as $26.43 per share.

If the deal goes ahead it would create immediate earnings increase the cash flow as well as diversifying Exelon’s generation portfolio geographically. This means that if NRG Energy and Exelon do merge that it would be capable of generating 47,000 megawatts, which would be enough electric to serve almost 45 million of homes.

The market capitalization of the combined company would be $40 billion according to Exelon.

Source: ap.google