Vistra will buy Dynegy in an all-stock deal worth $1.74 billion, the U.S. power producers said on Monday, the latest in a wave of mergers in the industry.

Debt-laden power producers such as Dynegy have seen their profit margins shrink, as cheap natural gas from shale fields drives electricity prices lower. Many power companies have merged this year as a result.

Dynegy shareholders will receive 0.652 shares of Vistra Energy for each share of Dynegy they own.

That translates to a price of $13.24 per share, representing a 43.8 percent premium to Dynegy’s stock price on Tuesday, before The Wall Street Journal reported about merger talks between the two companies, according to CNBC.

The deal is valued at $1.74 billion, based on the 131.37 million Dynegy shares outstanding, according to Thomson Reuters data.

The combined company will have a market value of more than $10 billion and will generate $350 million in earnings before income taxes and amortization on an annualized basis, Vistra and Dynegy said.