NRG cites progress on GenOn merger

NRG Energy (NYSE: NRG) said in a late-August filing with the Securities and Exchange Commission that is making good progress toward closing its merger with GenOn (NYSE: GEN) by the first quarter of 2013 and is slightly ahead of schedule.

In July, NRG and GenOn announced they had signed a deal to merge the companies in a stock-for-stock transaction to create the largest competitive generator in the nation with a fleet of about 47,000 MW of generation.

“We have made all required filings with state and federal agencies and have filed our S-4 Registration Statement with the SEC,” NRG said in the “Integration News” update posted with the SEC on Aug. 24. “We are on track and even slightly ahead of our initial plan and are so far progressing smoothly in the regulatory review process.” The best estimated close of the deal is still by the first quarter of next year, NRG said.

In the document, NRG also seemed to suggest that it is not planning to offer special buy-out packages to offset the loss of 500 positions through the consolidation.

“We are not planning to make any changes to our retirement plans, and at this time we are not contemplating any special retirement package options,” NRG said in the filing.

“NRG is offering a severance package to all employees affected by the merger,” said an NRG spokesperson, who added that displaced employees can also receive outplacement assistance.

Employees who are not selected to continue in their current posts after the combination will have an opportunity to apply for jobs within the combined company before the search is opened up to outside applicants, according to the NRG filing.

Bringing the two companies together is being coordinated by a group of managers from NRG and GenOn, according to the filing.

The public filing was made under Securities Act Rule 425 regarding communications in connection with business combinations.

Also, in a Sept. 11 filing at the SEC, NRG said that on Sept. 7, Herbert Tate informed the Board of Directors of NRG of his intention to resign from the board effective that day to pursue other interests. “His decision to resign was not as a result of any disagreement with the Company or its management,” NRG noted. “Mr. Tate has served on the Board of Directors since December 2003.”

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.