The FERC approval was the last regulatory approval required to close the transaction, which has been approved by the boards of directors of both companies, and Vistra is expected to complete the transaction within a few weeks
Vistra secures regulatory approval for Energy Harbor acquisition. (Credit: Lukáš Lehotský on Unsplash)
US-based energy company Vistra has secured the Federal Energy Regulatory Commission (FERC) approval to complete its previously announced acquisition of Energy Harbor.
Energy Harbor is a carbon-free power producer and fully integrated retail energy provider, operating the second largest non-regulated nuclear fleet in the US.
The FERC approval was the last regulatory approval required to close the transaction, which has been approved by the boards of directors of both companies.
Vistra is expected to complete the transaction, which presents a unique opportunity to advance the growth of its zero-carbon generation portfolio, within a few weeks.
In March last year, Vistra signed a definitive agreement to acquire the Ohio-based independent power producer Energy Harbor for a total of $3.43bn.
The acquisition involves a 4,000MW nuclear capacity fleet and around one million customers.
The merger will create an integrated retail electricity and zero-carbon generation company with a large fleet of nuclear power plants, along with renewables and energy storage portfolio.
Under the terms of the acquisition agreement, Energy Harbor will merge with and into Vistra Vision, a newly formed subsidiary holding company of Vistra.
Vistra Vision will combine Energy Harbor’s nuclear and retail businesses with Vistra’s nuclear and retail businesses and Vistra Zero renewables and storage projects.
Vistra Vision will become a large-scale business with around 7,800MW capacity, about five million retail customers in the US, and nearly 1,100MW of additional renewables projects.
Vistra president and CEO Jim Burke then said: “We are excited to announce this unique combination and the many benefits it brings to our key stakeholders – customers, employees, communities, and shareholders.
“Vistra has been focused on responsibly transitioning our power generation profile, and though we’ve made significant progress over the past several years, there are few opportunities to grow a reliable and dispatchable zero-carbon generation portfolio at scale this quickly.
“As our country navigates a massive energy transition to cleaner sources of electricity, nuclear energy provides the unique capability of being both carbon-free and a dependable, always-on source of reliable power.”