Exelon Offers to Buy NRG

Oct. 20, 2008
Deal would create one of the largest U.S. energy companies.

Chicago-based energy company Exelon Corp. has offered to buy its competitor, NRG Energy, for $6.2 billion in a deal which would create a national energy giant worth about $60 billion.

In a letter delivered on Oct. 19 to NRG President and chief executive officer David Crane and Chairman Howard Cosgrove, Exelon proposed to acquire all of NRG's outstanding common stock in an all-stock transaction.

"We believe a combination of Exelon and NRG would represent an exceptional value for shareholders of both companies," John Rowe, chairman and CEO of Exelon, said in a statement.

"This combination would not only diversify Exelon's generation portfolio geographically, it would also create immediate earnings and cash flow accretion."

He added that an Exelon-NRG combination would result in an enterprise that would generate capacity of around 47,000 megawatts, or enough electricity to serve nearly 45 million homes.

Exelon is one of the nation's largest electric utilities with nearly $19 billion in annual revenues.

The company, which has 17,800 employees, has one of the industry's largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic, said company officials.

Exelon distributes electricity to approximately 5.4 million customers in northern Illinois and Pennsylvania and natural gas to 480,000 customers in the Philadelphia area.

Copyright Agence France-Presse, 2008

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!