Constellation is buying natural gas and geothermal power provider Calpine for $16.4 billion, joining together two of the country’s biggest power companies.
The purchase would make the country’s leading retail electric supplier, serving 2.5 million customers, the companies said Friday. It’s geographic footprint will span the continental U.S. and include a significantly expanded presence in Texas, the fastest growing trade for power demand, as well as other key strategic states, including California, Delaware, recent York, Pennsylvania and Virginia. The buyout will also make the
Constellation will buy Calpine with 50 million of its shares and $4.5 billion in liquid assets. It will also assume about $12.7 billion in Calpine obligation. The total worth of the deal will be about $26.6 billion.
The combined corporation will have nearly 60 gigawatts of capacity from zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration and battery storage.
“By combining Constellation’s unmatched expertise in zero-emission nuclear vigor with Calpine’s industry-leading, best-in-class, low-carbon natural gas and geothermal production fleets, we will be able to propose the broadest array of vigor products and services available in the industry,” Constellation CEO Joe Dominguez said in a prepared statement Friday.
The deal is anticipated to add more than $2 billion of free liquid assets flow a year, which the companies said will make strategic financing and scale to reinvest in the business.
“Together, we will be better positioned to bring accelerated financing in everything from zero-emission nuclear to battery storage that will power our economy in a way that puts people and our surroundings first,” Calpine CEO Andrew Novotny said.
The swap is expected to close within a year of its signing. It will require regulatory approvals from the Federal vigor Regulatory fee, the Canadian Competition Bureau, the recent York community Service fee, the community Utility fee of Texas and other regulatory agencies.
Privately held Calpine is based in Houston. Shares of Constellation vigor Corp., based in Baltimore, surged more than 13% before the trade open.
