Constellation Energy nearing $30 billion deal to acquire Calpine, sources say

David French | Source: Reuters | Posted 01/09/2025

Keyword Tags:

Constellation Energy (CEG.O), opens new tab is nearing a roughly $30 billion deal to acquire power producer Calpine, people familiar with the matter said on Wednesday, a move that would significantly expand Constellation's generation assets at a time of rising U.S. power demand.

AI generated summary

Constellation Energy is in the final stages of acquiring power producer Calpine in a deal worth around $30 billion, as reported by sources familiar with the matter. The transaction is expected to involve a mix of stock and cash, including the absorption of approximately $12 billion of Calpine's debt by Constellation. While discussions are progressing, there is no guarantee that a deal will be reached, and both companies have declined to comment on the speculation.

If the acquisition proceeds, it would mark a significant milestone in the U.S. power industry and would allow Constellation to expand its generation assets, particularly in gas-fired power. This move comes amid a surge in power demand fueled by advancements in artificial intelligence and data centers, making generation assets increasingly desirable for investors. The potential deal with Calpine would enable Constellation to broaden its geographic reach beyond its current focus areas, offering access to Calpine's power plants in Texas and assets on the West Coast.

Link to Original Article

Please find the link to the full article below. (Please note that content provider might require a paid subscription)

Source Link: https://www.reuters.com/business/energy/constellation-nearing-30-bln-deal-calpine-corp-bloomberg-news-reports-2025-01-08/

Create a free trial account: Sign Up

Grid monitor is free to try. No credit card required

Constellation Energy nearing $30 billion deal to acquire Calpine, sources say

AI generated summary

Link to Original Article

Create a free trial account: Sign Up

Already have an account? Login