Nasdaq
Energy provider NRG Energy (NYSE: NRG) has announced it is acquiring Direct Energy, a North American subsidiary of U.K.-based Centrica PLC (OTC: CPYYF). The all-cash deal is for $3.625 billion, and is expected to close by the end of 2020.
The move will diversify NRG’s business, expanding its presence into all 50 U.S. states and six Canadian provinces, and adding more than three million retail customers. NRG says the combination will enable it to better match its power generation capabilities with customer demand. It will enhance its retail natural gas capabilities, expand its services business to the East Coast, and add retail customers on the East Coast and in Canada.
NRG currently has over 30 power generation facilities and about 3.7 million retail customers, with a concentration in Texas under the Reliant brand. Most of its generating capacity is from natural gas and coal, but the company also has some nuclear and renewable capacity. The deal introduces more diversity, as 76% of Direct Energy’s residential customers are outside of Texas.
