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Exelon completes regulatory filings in proposed acquisition of NRG Energy
By Lisa Kerner
Charlotte, N.C., Dec. 18 - Exelon Corp. filed an application with the Federal Energy Regulatory Commission seeking approval for its proposed combination with NRG Energy, Inc.
In addition, Exelon said it notified the U.S. Department of Justice and the Federal Trade Commission of its intention to acquire NRG.
NRG called Exelon's actions "premature" because there "is no transaction to approve."
Exelon's offer, according to an NRG statement, significantly undervalues NRG, and the regulatory filings "do nothing to address this fundamental issue."
According to Exelon, a combined Exelon-NRG would need to divest some generating capacity to protect competitive markets. Exelon, in its FERC filing, proposed to divest three of its facilities in Texas and three plants currently owned by NRG.
"Our regulatory filings represent an important step in realizing the value of an Exelon-NRG combination, and we will continue to work diligently toward achieving all regulatory approvals and expeditiously consummating the transaction," Exelon president and chief operating officer Christopher M. Crane said in a company news release.
NRG has urged its shareholders not to tender their shares in Exelon's offer for the company that began Nov. 12.
Exelon, a Chicago-based electric company, is offering a fixed exchange ratio of 0.485 shares of Exelon common stock for each NRG share in the unsolicited offer.
The offer expires at 5 p.m. ET on Jan. 6, the release said.
Exelon or its subsidiary, Exelon Xchange Corp., also plan to propose expanding the Princeton, N.J.-based power company's 11-member board to up to 15 members and filling the resulting vacancies with Exelon nominees.
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