On May 16, 2025, NRG Energy Inc. disclosed a specific term of its definitive agreement to acquire LS Power's premier power portfolio. The company will be required to pay a $400 million termination fee to LS Power Equity Advisors under certain circumstances if the deal is not completed.
This detail provides clarity on the financial implications and risks associated with the $12 billion cash-and-stock acquisition. Such termination clauses are standard in large-scale M&A transactions and outline the costs if the deal falls through due to specific conditions.
The acquisition, which is set to double NRG's generation capacity, is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals. The termination fee is a material aspect of the overall transaction structure.
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