BALTIMORE and HOUSTON Energy Merger
Constellation (Nasdaq: CEG) to Acquire Calpine Corp. in $16.4 Billion Deal
Constellation and Calpine Corp. have announced a landmark agreement, where Constellation will acquire Calpine in a cash and stock transaction valued at approximately $16.4 billion. This strategic move will create the nation’s largest clean energy provider, catering to a wide range of customers with innovative energy and sustainability solutions.
The acquisition will see Constellation, already the largest producer of emissions-free electricity in the nation, merge with Calpine, the leading U.S. producer of energy from low-emission natural gas generation. The combined entity will offer customers a diverse portfolio of clean energy options, including an expanded renewable energy portfolio and advanced sustainability products.
“This acquisition will enable us to better serve customers nationwide, from families to businesses and utilities,” said Joe Dominguez, president and CEO of Constellation. “By leveraging Constellation’s expertise in zero-emission nuclear energy with Calpine’s industry-leading low-carbon natural gas and geothermal generation fleets, we will provide the most comprehensive array of energy products and services in the industry.”
The merged company aims to invest in new clean technologies and existing energy sources to meet the increasing demand for sustainable energy solutions. Calpine’s low-emission natural gas plants will play a vital role in maintaining grid reliability while transitioning to cleaner energy sources. Additionally, Constellation plans to expand its zero-emission energy sources by exploring new nuclear projects, investing in renewables, and enhancing existing clean energy facilities.
Andrew Novotny, president and CEO of Calpine, expressed excitement about the merger, highlighting the shared commitment to driving a cleaner, healthier, and more sustainable future for all Americans. The collaboration will enable accelerated investment in zero-emission nuclear and battery storage technologies, positioning the combined company as a frontrunner in the energy industry.
The transaction is expected to deliver significant benefits to Constellation’s shareholders, with projected earnings per share accretion and enhanced free cash flow generation. The merged entity will continue to uphold a strong balance sheet and is committed to sustainable growth through strategic investments in clean energy solutions.
Overall, the merger between Constellation and Calpine is set to create the cleanest and most reliable energy generation portfolio in the U.S., with a coast-to-coast presence and a focus on customer-centric sustainable solutions. The combined entity aims to advance clean energy initiatives, drive community development, and support economic growth through innovative and environmentally responsible practices.