Vistra acquires Dynegy to form a power producer giant in Texas
Date: 2017-10-31   Author: Ojaswita Kutepatil  Category: #news

Vistra acquires Dynegy to form a power producer giant in Texas

Vistra Energy and Dynegy, two independent power producers, have scarcely announced their merger in an all stock-deal, which has reportedly been in the works since May.

Reports claim that Vistra Energy’s acquisition with Dynegy for USD 1.74 billion would make the combined unit the state’s largest power producer and one of U.S.’s biggest electricity generators. The purchase would also help Vistra expand its reach into the Northeast and Midwest regions, where Dynegy has already established its footprints and operates several coal-fired and natural gas plants. For the record, the Houston-based power producer Dynegy operates a total of 27,000 MW of power producing facilities throughout the Midwest, Mid-Atlantic, Northeast, and Texas.

Sources reveal that, the combined company will have a power production capacity of more than 40 gigawatts, of which over 60 percent of power will be generated from natural gas-fired plants, and the rest from nuclear, coal, and solar power.

Vistra and Dynegy’s move of consolidation among the independent power producers, is the latest trend witnessed amidst industry M&As, cite experts. It has also been observed that of late, the independent power producers have been striving to find successful business models since the industry deregulation, that was introduced to promote healthy competition in the utility sector and lower the power costs. Moreover, the astonishing boom in natural gas production in the U.S. has also significantly lowered power prices, making it difficult for the companies to garner profits. On these grounds, analysts claim that power companies like Dynegy, who have seen their profit margins shrink, have harnessed the growth strategy of M&As.

Sources state that the combined company will have a market valuation of more that USD 10 billion and is anticipated to generate over USD 350 million in earnings prior to its amortization and income taxes on an yearly basis.

According to the recent premarket trading, Dynegy shares went up by 13% to USD 12.65.

The deal is expected to close in the second quarter of 2018, cite sources.



About Author


Ojaswita Kutepatil

Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. Currently, she works at AlgosOnline. as an Content writer, where she pens down write-ups pertaining to the market res...

Read More

More from Ojaswita


Post Recommendents

Air Cargo Security Systems Market Set to Register healthy CAGR During 2018-2025
Author: Partha Ray

MarketStudyReport.com Add New Report Global Air Cargo Security Systems Market to its database which covers the market landscape and its growth prospects over the coming years.

The Air Cargo Security Systems market is an intrinsic study o...


Airborne Military Antenna Market 2018: Industry Growth, Competitive Analysis, Future Prospects and Forecast 2025
Author: Partha Ray

Market Study Report newly added the Global Airborne Military Antenna Market Report that gives meticulous investigation of current scenario of the market size, share, demand, growth, trends, and forecast in the coming years.

A brief gist ...


Temperature Transmitters Market Size, Share, Trend & Growth Forecast to 2025
Author: Partha Ray

The research report on Global Temperature Transmitters Market provides the up-to-date market trends, the present market scenario, and the market forecast during 2018-2023. The complete analysis of Temperature Transmitters market on the global scal...