Centrica Onto Final Step For North American Business Sale

(Alliance News) - Energy supplier Centrica PLC on Thursday said NRG Energy Inc got further ...

Alliance News 8 October, 2020 | 3:15PM
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(Alliance News) - Energy supplier Centrica PLC on Thursday said NRG Energy Inc got further regulatory approvals needed to buy its North American business Direct Energy.

NRG Energy received notice from the Department of Justice and the Federal Trade Commission granting early termination of a waiting period for the sale.

The sale still needs approval from the Federal Energy Regulatory Commission, with the transaction expected to be completed later in the fourth quarter of 2020.

Centrica in July announced its plans to sell Direct Energy for USD3.63 billion in cash, as part of an ongoing business restructuring programme and to focus back on the UK and Ireland businesses.

The disposal increases the long-term strength of its balance sheet, Centrica said, with proceeds intended to be used to reduce net debt significantly and to make a contribution to the defined benefit pension schemes.

Centrica shares were up 2.3% at 41.87 pence each in London on Thursday afternoon.

By Greg Roxburgh; gregroxburgh@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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