RRI Energy (NYSE:RRI), Mirant Corp. (NYSE:MIR) Closing Deal

Mirant Corp. and RRI Energy Inc. Merger

The merger between RRI Energy (NYSE:RRI) and Mirant Corp. (NYSE:MIR) has generated a lot of interest, and the companies said the deal should close before the end of 2010.

After the deal is completed, Mirant Corp. and RRI Energy Inc. will become among the largest independent energy companies in the U.S.

Much of the impetus for making the deal was in relationship to controlling costs, at least over the short term.

As far as the benefits of making the deal for cost savings, it is estimated the combined company will cut costs by $150 million on an annual basis, while needing to spend about $125 million one time to bring it all together.

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.