Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

2

Dynegy Buying 5 Coal Power Plants From Ameren

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Dynegy (NYSE: DYN  ) entered into an agreement today to buy Ameren Energy Resources (AER) from Ameren (NYSE: AEE  ) . According to Dynegy's most recent 10k, the company's Illinois Power Holdings (IPH) subsidiary will acquire AER and its subsidiaries, thereby adding 4,119 megawatts (MW) of generation to Dynegy's Illinois operations. The deal is subject to regulatory approval, and the companies expect the transaction to close in the fourth quarter of 2013.

The purchase involves no cash or stock issuance.  Dynegy will take on $825 million of debt with its acquisition of AER subsidiary Ameren Energy Generating Company (Genco), according to Dynegy's press release. The company will gain five coal-fired power plants through this deal.

Dynegy sees several benefits to this acquisition. When the deal closes, the company will own more than 8,000 MW of generating capacity in Illinois, and nearly 14,000 MW nationally. The transaction creates synergies that Dynegy estimates will exceed $60 million by 2015, and supports Dynegy's strategy to become a retail energy supplier for large commercial and industrial customers in Illinois. 

The deal allows Ameren to focus exclusively on its rate-regulated electric, natural gas, and transmission operations, according to the company's press release. "We expect that this transaction will reduce business risk and improve the predictability of our future earnings and cash flows, which is expected to strengthen Ameren's credit profile and support Ameren's dividend," said Thomas R. Voss, Ameren's CEO.

 
 

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2314061, ~/Articles/ArticleHandler.aspx, 9/5/2015 12:23:17 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sara Murphy
TMFSMurph

Sara has been writing about and analyzing companies from a sustainable investment perspective for the last 15 years. An ardent optimist, she believes that it is entirely possible for all stakeholders to benefit and profit from companies' ingenuity and innovation.

Today's Market

updated 15 hours ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 4:00 PM
AEE $38.56 Down -0.69 -1.76%
Ameren Corp CAPS Rating: **
DYN $24.19 Down -0.96 -3.82%
Dynegy Inc. CAPS Rating: **