NRG Energy will buy nearly 8,000 MW of generation capacity across the U.S. from bankrupt power firm Edison Mission Energy (EME) for $2.6 billion.
The company entered into a plan sponsor agreement to acquire almost all EME’s assets, including EME’s generation portfolio and Edison Mission Marketing and Trading, a proprietary trading and asset management platform. The acquisition and transactions outlined in the agreement will be consummated as part of an EME Chapter 11 plan of reorganization to be sponsored by NRG. Each of EME’s major stakeholders has agreed to support and pursue a Chapter 11 plan sponsored by NRG.
“Edison Mission Energy is a great fit with NRG, as virtually 100% of their assets, their particular expertises and the balance of their technologies deployed complement NRG’s own assets, personnel and businesses,” said David Crane, president and CEO of NRG Energy. “We look forward to working with EME’s employees, its management and its owners to close this transaction expeditiously and ensure that the ensuing integration achieves the best possible outcome for all concerned.”
If the deals goes through, the acquisition will add 1,700 MW of wind capacity, 1,600 MW of gas-fired capacity, and 4,399 MW of coal-fired capacity to NRG’s existing fleet. It will also make NRG the third largest U.S.-based renewables generator.
Princeton, N.J.-based NRG Energy and Houston, Texas-based GenOn last year merged in a $1.7 billion deal.