📰 Constellation Energy to acquire Calpine in $16.4 billion deal

The merger will combine Constellation's nuclear power capabilities with Calpine's natural gas and geothermal assets, creating U.S.'s largest clean energy provider.

Constellation Energy CEG 0.00%↑ has announced it will acquire Calpine Corporation in a cash-and-stock transaction valued at $16.4 billion, creating the largest clean energy provider in the U.S. The deal combines Constellation’s nuclear power with Calpine’s low-emission natural gas and geothermal assets, positioning the company to meet surging electricity demand.

The acquisition, which includes the assumption of $12.7 billion in Calpine’s debt, boosts Constellation’s renewable energy portfolio. It expands its retail operations, increasing its customer base to 2.5 million homes and businesses across the U.S.

Joe Dominguez, Constellation’s CEO, highlighted the merger’s potential to provide cleaner, more reliable energy, saying, "By combining Constellation’s zero-emission nuclear power with Calpine’s natural gas and geothermal fleets, we can offer the cleanest, most reliable energy products available."

Calpine’s assets will also play a crucial role in maintaining grid reliability as renewable energy sources expand. Both companies are investing in carbon sequestration technologies to reduce the environmental impact of natural gas.

The transaction is expected to close within 12 months, subject to regulatory approvals. The combined company will be headquartered in Baltimore, with a significant presence in Houston. The deal is expected to generate over $2 billion in annual free cash flow, supporting further investments in clean energy.

This acquisition strengthens Constellation’s position as a leader in the energy transition, with plans for continued growth in clean energy technologies.

Source: Constellation Energy Press Release, WSJ

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