Following approval earlier in the day from the Missouri Public Service Commission, the Kansas Corporation Commission has also approved the proposed merger between Topeka-based Westar Energy and Kansas City-based Great Plains Energy.
The $12.2 billion deal is the second such one to come to light after the KCC halted the first proposal last year amid fears over possible job cuts and higher costs. Under the agreement, the two companies will become wholly owned subsidiaries of a new parent company and serve more than 1.5 million customers in Kansas and Missouri.
In a release from the KCC late Thursday, the Commission found the merger to be in the public’s interest based on a modified settlement agreement plus one additional condition. The additional condition requires the company to develop, and submit for Commission approval, an Integrated Resource Plan (IRP) reporting process within three months of the close of the transaction.
The deal is being lauded as a merger of equals, saying it is a straight stock swap and no cash would change hands.
