Announcements from regulatory bodies like the Federal Energy Regulatory Commission (FERC) or the U.S. Department of Justice

Constellation Energy ($CEG) Acquires Calpine ($CPN) for $26.6 Billion, Boosting Clean Energy Capacity to 60 GW Amid AI Demand Surge

Jan 10, 2025, 12:03 PM

Constellation Energy Corp. ($CEG) has agreed to acquire Calpine Corp. ($CPN) in a deal valued at approximately $26.6 billion, combining two of the largest power generation companies in the U.S. The acquisition, announced on January 10, 2025, includes a cash-and-stock transaction with Constellation paying $16.4 billion in equity, consisting of 50 million shares and $4.5 billion in cash, and assuming $12.7 billion of Calpine's net debt. The merger will create the nation's leading producer of clean and reliable energy, with nearly 60 GW of capacity from zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration, and battery storage. The deal is expected to close within a year, subject to regulatory approvals, and is anticipated to add more than $2 billion of free cash flow annually. The acquisition comes amid a surge in U.S. power consumption, driven by the growth in artificial intelligence technologies and increasing electricity demand.