Constellation Energy Corp. will acquire Calpine Corp. in a deal that will create the largest U.S. fleet of zero- and low-emission power generation.
The $29.1 billion deal announced Jan. 10 is expected to have a net purchase price of $26.1 billon when the transaction closes.
Constellation owns the nation’s largest nuclear fleet. Calpine has the largest geothermal operation and the largest lower-emissions natural gas fleet in the U.S., along with a robust effort to develop energy storage and carbon capture/sequestration capacity.
During a conference call Jan. 10, Constellation CEO Joe Dominguez said the deal will create the largest, cleanest, most reliable fleet in the nation — nearly 60 GW — with a coast-to-coast footprint ideally suited to meet what is expected to be a soaring national demand for electricity.
He noted Microsoft’s recent announcement that it expects to spend $80 billion on new data centers in 2025 alone.
Analysts on the call seemed impressed with the terms of the transaction.
Constellation stock closed 4.6% lower in heavy trading Jan. 8, as word of the pending agreement began to circulate. It opened 21% higher in early trading Jan. 10, after details of the transaction were released.
Constellation CFO Dan Eggers said the company will not need to issue new debt to finance the acquisition, although subsequently it may issue new debt to retire more-expensive Calpine debt.
Constellation said the combination will create the nation’s leading competitive retail electric supplier and allow it to offer its 2.5 million customers a broader array of solutions customized to their budgets and sustainability goals.
This story will be updated.
