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Vistra Energy completes $1.7bn acquisition of Dynegy

EBR Staff Writer Published 10 April 2018

Vistra Energy has completed its all-stock acquisition worth about $1.74bn of Texas-based energy company Dynegy.

The closing of the merger deal was done after approval from stockholders of both the companies in March followed by receipt of all necessary regulatory approvals.

It was in last October that the merger was proposed by Vistra Energy, the parent company of Texas-based retail electricity provider TXU Energy and electric utility Luminant.

Vistra Energy will be the name of the new combined company, which will be based in Irving, Texas.

While Vistra Energy will have a stake of around 79% in the combined company, Dynegy shareholders will hold the remaining stake of 21%.

Vistra Energy president and CEO Curt Morgan said: “With this combination completed, Vistra Energy is now positioned to be the leading integrated power company in the United States.

"We further believe our low-cost structure, diversified business operations, and strong balance sheet create the platform to produce significant shareholder value, as demonstrated by our stated expectation to exceed our previously communicated merger-related synergy and operational improvement targets.”

The enlarged Vistra Energy currently has around 6,000 employees in 12 US states. It serves nearly 2.7 million residential customers across five top retail states along with 240,000 commercial and industrial retail customers.

Vistra Energy now has about 40GW of installed generation capacity, comprising over 60% natural gas-fired plants apart from nuclear, coal-fired and other type of power plants. Of these, 84% are located within the ERCOT, PJM, and ISO-NE competitive power markets.

The new combined entity is estimated to have more than $10bn of combined market capitalization and a combined enterprise value more than $20bn.

The company said that the combination of Dynegy's generation capacity and existing retail footprint with Vistra Energy's integrated ERCOT model positions the merged entity ompany as a major integrated retail and generation platform throughout key competitive power markets in the US.

Image: The enlarged Vistra Energy now owns about 40,000MW of installed generation capacity. Photo: courtesy of xedos4/FreeDigitalPhotos.net.