NRG Energy Announces $12 Billion Acquisition from LS Power

Published 9 hours agoNRG

NRG Energy Announces $12 Billion Acquisition from LS Power

NRG Energy has unveiled plans to acquire power generation assets from LS Power in a deal valued at $12 billion. This transaction includes $6.4 billion in cash, $2.8 billion in stock, and the assumption of $3.2 billion in net debt, according to a report by Reuters. This strategic move features the acquisition of 18 natural gas-fired facilities with a collective capacity of 13 gigawatts, alongside a virtual power plant, effectively doubling NRG's total generation capacity to 25 gigawatts.

The acquisition is driven by NRG's strategy to leverage the expected surge in electricity demand, attributed to advancements in artificial intelligence, cryptocurrency data centers, and broader electrification trends. CEO Larry Coben described this period as the onset of a 'power demand supercycle.' The financial impact of the deal is promising, with anticipated immediate enhancements in earnings per share (EPS) and an increase in the long-term EPS growth forecast from 10% to 14%. Furthermore, the deal will yield approximately $400 million in tax benefits.

The transaction is projected to close in the first quarter of 2026. In response to the announcement, NRG's shares experienced a more than 6% increase in premarket trading, reflecting positive market sentiment towards the deal. As of the latest trading, NRG Energy's stock price was at $157.24, representing a modest increase from the previous close.

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