Constellation Energy Corp. is reportedly on the verge of acquiring Calpine Corp., a move that could result in one of the largest transactions yet seen in the power generation industry. The potential deal, valued at approximately $30 billion including debt, is currently under negotiation with Calpine’s private equity owners, according to individuals familiar with the matter. An announcement is anticipated in the coming weeks.
The discussions involve Baltimore-based Constellation and several stakeholders in Calpine, including Energy Capital Partners, CPP Investments, and Access Industries. These parties had previously taken Calpine private in 2017 in a transaction worth over $17 billion.
The anticipated acquisition comes amidst rising forecasts for U.S. electricity demand, which is expected to increase substantially in the forthcoming years. With the growing emphasis on renewable energy and carbon neutrality, such a merger may allow Constellation Energy to expand its footprint and enhance operational efficiency.
For more detailed information on the ongoing negotiations, please refer to the full article on Bloomberg Law.