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NRG Expanding National Reach with $3.6B Deal for Direct Energy
In the second major M&A deal this month involving a Texas energy firm, Houston- and Princeton, NJ-based integrated power firm NRG Energy has agreed to acquire Centrica Plc’s North American subsidiary Direct Energy for $3.63 billion. The all-cash deal will double NRG’s customer count to some six million residential and business accounts.
“It’s really exciting for NRG as we have national reach,” NRG CEO Mauricio Gutierrez told Reuters. Until now, NRG’s business was primarily focused on Texas.
About 76% of Direct Energy’s residential customer base is outside Texas. However, the company, also based in Houston, controls about 10% of the electricity market in Texas, the Houston Chronicle reported.
The deal is expected to close by year’s end, pending regulatory approval. Last week, Chevron Corporation, headquartered in San Ramon, CA, agreed to acquire Houston-based Noble Energy, Inc. in an all-stock transaction valued at $5 billion.
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- ◦Economy
- ◦Sale/Acquisition
