Exelon claims 51 per cent merger approval from NRG shareholders

27 February 2009

Nuclear power giant and utility operator Exelon Corporation's offer to take over independent power producer NRG Energy Inc drew acceptance from about 51 per cent of the outstanding shares of NRG common stock, the company claimed on Thursday.

Exelon, with nearly $19 billion in annual revenues,  has strong positions in the Midwest and Mid-Atlantic. It has 10 nuclear power stations, with 17 reactors, representing approximately 20 per cent of the US nuclear industry's power capacity, and about 3 per cent of all US power generation.

NRG, a Fortune 500 company, owns and operates 48 power plants and generate approximately 24,000 megawatts.

The deal, if it materialises, would create the largest power company in the US, analysts said. The combined entity would be big enough to power nearly 45 million homes with 47,000 megawatts. It would have a diverse power mix and a market capitalisation of $40 billion.

The Chicago-based utility company announced that NRG shareholders had tendered more than 125 million shares of NRG's common stock in Exelon's exchange offer.

''A majority of NRG owners support Exelon's offer to combine the two companies," said John Rowe, Exelon chairman and CEO. "Unfortunately, this is a message the current NRG board and management have apparently chosen to ignore.''