Power company Vistra Energy in the U.S. state of Texas said Monday it will buy Dynegy Inc. in an all-stock deal to create the state's largest power producer and one of the nation's biggest electricity generators.
The roughly 1.75 billion U.S. dollar deal will create a combined company with a 10 billion dollar Wall Street value. Vistra shareholders will own 79 percent of the combined company.
The combined company, with its headquarters in Irving, Texas, will have more than 40 gigawatts of power production with 60 percent from natural gas-fired plants, and the rest from coal, nuclear and solar power.
Vistra Chief Executive Officer Curt Morgan will remain CEO of the merged company. The deal is expected to close in the second quarter of 2018.
Vistra is the legacy company of Texas power giant Energy Future Holdings, which declared bankruptcy in 2014.
Both Vistra and Dynegy have shifted in recent years to decrease their reliance on coal power and build up their power generation portfolios with more gas-fired power, which is cleaner and typically more profitable.
The roughly 1.75 billion U.S. dollar deal will create a combined company with a 10 billion dollar Wall Street value. Vistra shareholders will own 79 percent of the combined company.
The combined company, with its headquarters in Irving, Texas, will have more than 40 gigawatts of power production with 60 percent from natural gas-fired plants, and the rest from coal, nuclear and solar power.
Vistra Chief Executive Officer Curt Morgan will remain CEO of the merged company. The deal is expected to close in the second quarter of 2018.
Vistra is the legacy company of Texas power giant Energy Future Holdings, which declared bankruptcy in 2014.
Both Vistra and Dynegy have shifted in recent years to decrease their reliance on coal power and build up their power generation portfolios with more gas-fired power, which is cleaner and typically more profitable.
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