The attempt to merge Kansas City-based Great Plains Energy and Topeka-based Westar Energy suffered a huge setback Wednesday, with the Kansas Corporation Commission unanimously denying the application.
First announced in May, both companies’ shareholders overwhelmingly approved the deal in September.
However, in December, the KCC’s staff said it couldn’t recommend approval of a merger. In February, the KCC conducted a seven-day hearing as it considered its options.
In the end, the KCC followed the recommendation of its staff to deny the merger for creating an unacceptably high financial risk for current and future customers. The commission’s vote was 3-0 against the merger. The commission said the price of the deal was just too high.
“Unfortunately, the transaction was presented to the commission as a take it or leave it proposal,” the commissioners wrote in their decision [PDF]. “Repeatedly, the joint applicants advised the commission that any significant safeguards that would protect consumers, such as maintaining a separate, independent Westar Board of Directors, would halt the transaction. Therefore, the proposed transaction could not be salvaged and the commission was left with no choice but to reject the proposed transaction.”
Full Content: Kansas Corporation Commission
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