Vistra to acquire Energy Harbor for $3.4 billion

Vistra, a US-based energy company, has agreed to buy Energy Harbor, a zero-carbon energy producing and retail platform. The $3.4 billion acquisition intends to add 4 GW of nuclear capacity and one million retail customers, which will let Vistra’s zero-carbon activities expand more rapidly.

In accordance with the terms of the deal, Energy Harbor will get $3 billion in cash and a 15 per cent stake in Vistra Vision. Energy Harbor and Vistra’s nuclear and retail operations, as well as Vistra’s Vistra Zero renewable and storage projects, will be integrated into a new entity called Vistra Vision. Vistra will own a 85 per cent stake in Vistra Vision, which will take on Energy Harbor’s net debt of $430 million. The acquisition excludes Energy Harbor’s legacy conventional generating fleet. Avenue Capital Group and Nuveen, the two major investors in Energy Harbor, will get both cash and the 15 per cent ownership stake.

The transaction is anticipated to finalise later in 2023 if it receives the necessary regulatory approvals, including those required by the Hart-Scott-Rodino Act from the Nuclear Regulatory Commission, the Federal Energy Regulatory Commission, and the Department of Justice. Once completed, Vistra Vision will become one of the largest retail businesses in the US, with five million customers across 18 states.