Exelon Offers to Buy NRG for $6.2 Billion

The unsolicited proposal values NRG shares at $26.43, a 37% premium.
Author:
Publish date:

Exelon

(EXC) - Get Report

proposed to acquire

NRG Energy

(NRG) - Get Report

for $6.2 billion.

In an unsolicited offer, Exelon proposed to buy NRG in an all-stock transaction with a fixed exchange ratio of 0.485 an Exelon share for each NRG share, representing a value of about $26.43 for each NRG share. The offer is a premium of 37% to NRG's closing price Friday of $19.33. Exelon closed Friday at $54.50.

"An Exelon-NRG combination would result in a total enterprise value of approximately $60 billion with a generating capacity of around 47,000 megawatts, or enough electricity to serve nearly 45 million homes," said John W. Rowe, chairman and CEO of Exelon, in a statement late Sunday.

The combined company would be the largest power company in the U.S., according to Exelon. The company's market capitalization would be $40 billion.

var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 1866681851; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);

NRG's board said it plans to review Exelon's proposal and "determine the appropriate response in due course." NRG advised its stockholders to take no action at this time.

In a letter to NRG President and CEO David Crane, Rowe disclosed the companies met on Sept. 30. He said Exelon is prepared to begin discussions and due diligence immediately.

Image placeholder title