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July 24, 2020, 8:11 a.m. EDT

NRG Energy's stock falls after deal buy Centrica sub Direct Energy for $3.6 billion in cash

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By Tomi Kilgore

Shares of NRG Energy Inc. /zigman2/quotes/208308731/composite NRG +0.65% shed 3.7% in premarket trading Friday, after the electricity and natural gas company said it will pay $3.625 billion in cash to buy U.K.-based Centrica PLC's /zigman2/quotes/205228367/delayed UK:CNA +0.61% /zigman2/quotes/203752788/composite CPYYY +0.82% North American subsidiary, Direct Energy. NRG said the deal, which is expected to close by the end of 2020, is expected to create $300 million in annual synergies. Direct Energy is a retail provider of electricity, natural gas and home and energy-related products and services with operations in all 50 U.S. states and in 6 provinces in Canada. "Direct Energy's significant East footprint provides better balance within NRG's existing portfolio while also providing NRG the ability to expand its successful capital-light renewable [Power Purchase Agreement] strategy outside of Texas," NRG said in a statement. NRG's stock has declined 16.4% year to date through Thursday and Centrica's U.S.-listed shares have tumbled 58.0%, while the SPDR Utilities Select Sector ETF /zigman2/quotes/206645117/composite XLU +0.81% has lost 6.1% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.36% has edged up 0.2%.

/zigman2/quotes/208308731/composite
US : U.S.: NYSE
$ 38.68
+0.25 +0.65%
Volume: 2.16M
April 16, 2021 4:00p
P/E Ratio
18.72
Dividend Yield
3.36%
Market Cap
$9.40 billion
Rev. per Employee
$2.18M
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/zigman2/quotes/205228367/delayed
UK : U.K.: London
56.52 p
+0.34 +0.61%
Volume: 8.88M
April 16, 2021 4:35p
P/E Ratio
65.72
Dividend Yield
0.00%
Market Cap
£3.26 billion
Rev. per Employee
£467,751
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/zigman2/quotes/203752788/composite
US : U.S.: OTC
$ 3.09
+0.03 +0.82%
Volume: 12,955
April 16, 2021 2:00p
P/E Ratio
60.25
Dividend Yield
2.21%
Market Cap
$4.50 billion
Rev. per Employee
$599,823
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/zigman2/quotes/206645117/composite
US : U.S.: NYSE Arca
$ 67.21
+0.54 +0.81%
Volume: 11.19M
April 16, 2021 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,185.47
+15.05 +0.36%
Volume: 2.21B
April 16, 2021 5:15p
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