NEW YORK (
(NRG - Get Report)
has agreed to buy
in an all-stock deal worth $1.7 billion.
The transaction will create the largest independent power generator in the U.S., with the ability to provide up to 47,000 megawatts of electricity.
According to the companies, NRG plans to exchange 0.1216 of a share of its common stock for each share of GenOn common stock.
Based on NRG's closing stock price of $18.05 on Friday, the deal represents a 20.6% premium to GenOn's closing price of $1.82.
Once the transaction is completed, NRG shareholders will own 71% of the combined company, while GenOn shareholders will own 29%.
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In the news release announcing the deal, NRG also said its standalone adjusted earnings before interest, taxes, depreciation and amortization would be about $530 million for the second quarter and $830 million for the first half of the year.
NRG also reaffirmed its full-year 2012 standalone guidance of adjusted EBITDA of $1.825 billion to $2.0 billion.
Meanwhile, GenOn raised its full-year (standalone) guidance for EBITDA to $467 million from $446 million.