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Power generation giant, NRG Inc has just confirmed they received a tempting proposal from the largest nuclear energy company in the US, Exelon Corporation. Exelon have offered $6.2 billion to acquire all NRG Energy’s outstanding shares following the dismal performance of stock prices recently. Since the financial turmoil began, New Jersey-based NRG has lost half of its market value in two months.
Exelon follow the lead of Warren Buffet, one of the world’s richest men and owner of MidAmerican Energy Holdings Co. in acquiring cheapened power assets. Buffet recently bought out Constellation Energy Group Inc for $4.7 billion, less than half of what the company was worth only a week earlier. Unfortunately Buffet also recently invested in NRG, so it seems he could be beaten at his own game.
If Exelon’s offer is accepted the Chicago-based utility company would be in the position to generate substantially more energy through nuclear power. Currently, in the US, it is much cheaper to produce nuclear power than electricity from gas sources by up to 70%, so growth in that sector seems highly likely. It may also mean that a recent bid to build another 24 nuclear reactors, to help generate more energy without increasing greenhouse-gas emissions, will be approved.
We’ll even throw in a free album.