US power utility Great Plains Energy has reached an agreement with Westar Energy to acquire Westar for an enterprise value of approximately US$12.2bn, including total equity value of approximately US$8.6bn.
Upon closing, Westar will become a wholly owned subsidiary of Great Plains Energy, which will have more than 1.5 million customers in Kansas and Missouri, nearly 13,000 MW of generation capacity (including the Wolf Creak nuclear power plant, currently jointly owned and operated by the two companies), almost 10,000 miles (16,000km) of transmission lines and over 51,000 miles (82,000 km) of distribution lines.
The companies anticipate making the required regulatory filings with the Kansas Corporation Commission and other regulatory entities during June and July of 2016. In addition, Great Plains Energy and Westar will seek shareholder approvals later this year. The transaction is subject to approvals from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. The transaction also is subject to the notification, clearance and reporting requirements under the Hart-Scott-Rodino Act by the Federal Trade Commission and the U.S. Department of Justice. The companies anticipate closing in the spring of 2017.
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