Sunday, April 11, 2010

Mirant (NYSE:MIR), RRI Energy (NYSE:RRI) Merging

Mirant Corp. and RRI Energy Merge

In what will become one of the largest independent energy companies in America, Mirant Corp. (NYSE:MIR) and RRI Energy (NYSE:RRI) are merging in a stock-swap deal worth $1.61 billion.

Once the merger is completed the two companies will take on the new name of GenOn Energy, with Mirant Ceo and Chairman Edward R. Muller leading the company through 2013. At that time he will retire and the current CEO and president of RRI, Mark M. Jacobs, will take the reins from there.

Until then, Jacobs will be the president of the new company and chief operating officer and director as well.

Terms of the deal are Mirant shareholders will receive 2.835 RRI common shares for each share of Mirant they hold. The share swap will be based on the closing price of RRI on Friday April 9 of $3.95. At that price Mirant is valued at $1.61 billion.

At close shareholders of Mirant will own 54 percent of the new company while RRI Energy shareholders will hold the other approximate 46 percent.

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