What happened

Units of Brookfield Renewable Partners (NYSE:BEP) rose more than 5% by 11 a.m. EDT on Friday. Powering the renewable-energy stock was the closing of its merger with TerraForm Power (NASDAQ:TERP).  

So what

Earlier this week, TerraForm Power shareholders voted in favor of merging with Brookfield Renewable Partners, which already owned a 62% interest in the renewable-energy producer. That transaction officially closed today, sending shares of the newly merged company higher. 

Wind turbines in a field at sunset.

Image source: Getty Images.

The deal makes Brookfield Renewable one of the world's largest integrated pure-play renewable power producers at more than 19,000 megawatts (MW) of installed capacity. The company also has an extensive development pipeline that currently totals 15,000 MW. It has a best-in-class balance sheet to finance future expansion, including the highest credit rating in the renewable energy sector and $3.4 billion of liquidity. 

Also helping power today's upward move was yesterday's distribution of shares in Brookfield Renewable Corporation to its existing investors. Unitholders in Brookfield Renewable Partners received one share of the corporation for every four units they owned as of July 27. The move was similar to a stock split, with the new entity providing "investors greater flexibility to invest in our business."

Now what

The deal is also immediately accretive to cash flow, which bolsters the company's ability to achieve its plan to grow the dividend at a 5% to 9% annual rate for the next several years.