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The merger between the owners of the Susquehanna power plant and a private investment firm is one step closer to being completed.
According to a press release, the Federal Energy Regulatory Commission (FERC) approved the merger of Talen Energy, which owns the power plant, and New York-based Riverstone Holdings LLC Wednesday.
FERC concluded the merger would not have a detrimental effect on competitive wholesale power markets. The order approving the transaction contains no substantive conditions the two parties must meet, the release said.
Earlier in October, a special meeting of Talen Energy stockholders approved the proposed merger of the two businesses.
Riverstone will buy Talen Energy for $1.8 billion. The financing for the acquisition is a combination of Riverstone’s cash on hand, the existing stock ownership of Talen Energy by Riverstone and a $250 million loan. After adding in the value of stock by Talen stockholders and assumed Talen debt, the value of the transaction is estimated at $5.2 billion.
Talen owns 23 plants spanning eight states; the only nuclear power plant is the Salem Township plant. Due to the Susquehanna power plant carrying nuclear energy, the transaction still has to meet approval by the Nuclear Regulatory Commission which is expected to approve the deal before the end of the year.
Talen Energy was formed from PPL Corporation’s spin-off of generating assets in 2015. During the spinoff, Riverstone’s employees owned near 35 percent of Talen’s stock. Once the merger is completed, stockholders will receive a cash consideration of $14 a share of Talen’s stock.
At the close of the stock market Wednesday, Talen’s stock was $13.90 per share. As of Monday afternoon, it was up to $13.95 per share.
As part of the restructuring of Talen and preparing for the merger, Talen announced in June it will lay off more than 130 “excess” workers at three plants and an office in Allentown, including pending layoffs of 53 people at Susquehanna.