A monster acquisition was announced Monday in Texas where Vistra Energy based in Dallas acquired Dynegy in an all-stock deal worth $1.74 billion.
The deal will result in a combined company with a market value of more than $10 billion. The two firms stated the purchase will also generate $350 million in earnings before income taxes and amortization on an annualized basis.
Based in Houston, Dynegy operates 27,000 megawatts of power producing operations in Texas, the Midwest, Mid-Atlantic and the Northeast.
As a result of the deal, Dynegy shareholders will get 0.652 shares of Vistra Energy for every share of Dynegy they own. It also means Vistra shareholders will own nearly 79 percent and Dynegy shareholders will own 21 percent stock in the combined company.