Mentioned:
There’s a new clean energy giant being formed in America.
What’s happening:
- Constellation Energy (NASDAQ: CEG) has announced they will acquire Texas based natural gas conglomerate Calpine in a deal valued at $26.6B USD
By the numbers:
- Constellation Energy will pay $4.5B USD in cash and issue $22.1B USD in common shares
- Calpine’s $12.7B USD of outstanding debt will also be absorbed entirely by Constellation Energy as part of the new deal
Why it matters:
- Calpine is one of the largest producers of natural gas and geothermal energy in North America
- This is one of the largest acquisitions to happen in the United States of America that is focused on creating a publicly traded clean energy powerhouse
Going deeper:
- Calpine has also been making a concentrated push into other areas of clean energy production, including battery storage, carbon capture technology and solar power
- Constellation Energy just recently landed a highly notable deal with the United States government worth more than a billion dollars to advance nuclear energy infrastructure
Market reaction:
- Shares of Constellation Energy soared +25% following the announcement
