Retail energy provider NRG Energy Inc. announced on Monday, July 23, its plan to merge with GenOn Energy Inc. in a $1.7 billion deal, The Wall Street Journal reports.
According to the news source, the two companies say together, they can create savings of up to $300 million a year by lowering administrative and financial costs. When the merger is complete, the companies will join to create the largest retail energy provider in the country.
NRG CEO David Crane said that the merger will allow the company to make new investments that will help the energy industry as a whole.
"It is time for this country to reinvest in its energy infrastructure," Crane said during a conference call with reporters. "If we can get a good return for our shareholders, we will reinvest in our infrastructure."
According to the news source, the deal is expected to give both companies a major boost after having struggled for some time as wholesale power prices fell to their lowest in 10 years.
According to the Houston Chronicle, NRG was already one of the largest generating companies in Texas. The merger comes a consumers in the state face major electricity rate hikes.