NEW YORK (AP) — Great Plains Energy is buying rival Westar for about $8.6 billion, creating one large power provider in Kansas and Missouri with more than 1.5 million customers in.
The two companies say the combination will lower their costs and help reduce rate increases for customers.
Great Plains Energy owns Kansas City Power & Light, which provides power in Kansas and Missouri. Westar's customers are in Kansas.
Kansas City, Missouri-based Great Plains Energy is offering $60 in cash and stock for each share of Westar. The companies value the deal at about $12.2 billion, when debt is included.
Shares of Great Plains Energy Inc. fell $1.62, or 5.2 percent, to $29.38 in morning trading Tuesday. Shares of Topeka, Kansas-based Westar Energy Inc. rose $4.24, or 8 percent, to $57.16.