NRG Energy Inc. is acquiring Stream Energy’s retail electricity and natural gas business later this year for $300 million plus working capital in an all-cash transaction, NRG announced this week.
Stream Energy serves more than 600,000 residential customers in nine states and the District of Columbia. The transaction is expected to increase NRG’s market share in Texas, Pennsylvania and a number of other markets in the eastern U.S.
“This transaction will strengthen NRG’s position as a growing, customer-driven energy company. It represents another step in perfecting our integrated business model,” said Mauricio Gutierrez, president and chief executive officer, NRG Energy. “Stream Energy’s retail energy business provides NRG an attractive opportunity to increase our national retail leadership position and potential for growth.”
The transaction is expected to close in the third quarter of 2019. It still depends on federal and state regulatory approvals including the Federal Energy Regulatory Commission, Georgia Public Service Commission and antitrust review under Hart-Scott-Rodino.
NRG Energy currently has more than three million customers nationwide. The company based both in Princeton, New Jersey, and Houston, is supported by close to 23,000 MW in power generation assets.