Great Plains Energy acquires Westar Energy in $12.2 billion deal
Great Plains Energy, Inc., parent company of KCP&L and Westar Energy, Inc., recently announced the acquisition of Westar Energy, in a deal with a combined cash and stock value totaling $12.2 billion.
“Westar and KCP&L are trusted neighbors and have worked together for generations in Kansas,” Terry Bassham, chairman and chief executive officer of Great Plains Energy and KCP&L said. “The combination of our two companies is the best fit for meeting our region’s energy needs. This is an important transaction for Kansas and our entire region. By combining our two companies, we are keeping ownership local and management responsive to regulators, customers and regional needs, while enhancing our ability to build long-term value for shareholders.”
The acquisition, which was approved unanimously by both companies’ boards of directors, will result in Great Plains Energy’s customer base growing to 1.5 million residents of Kansas and Missouri, with nearly 13,000 megawatts of generation capacity.
“The utility industry is facing rising customer expectations, increasing environmental standards and emerging cyber security threats,” Bassham said. “These factors, coupled with slower demand growth for electricity, are driving our costs and customer rates higher. Our acquisition of Westar will create operational efficiencies and future cost savings that will benefit all involved – customers, shareholders, employees and the communities we serve.”
