Constellation has announced an agreement to acquire Calpine Corp. for approximately $16.4 billion in cash and stock. The net purchase price could reach $26.6 billion after accounting for cash generated by Calpine before closing as well as the value of tax attributes at Calpine. Constellation would pay $4.5 billion in cash and assume roughly $12.7 billion of Calpine’s debt as part of the deal.
Constellation is the nation’s largest operator of nuclear power plants, and the deal would broaden the company’s portfolio with Calpine’s primarily natural gas power assets amid soaring U.S. electricity demand, projected to grow 16% over the next five years as artificial intelligence drives energy use up.
In 2018, Calpine was acquired and taken private by an affiliate of Energy Capital Partners and other investors. The current transaction is expected to close within a year, subject to regulatory approvals.
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