Exelon Corporation acquires Constellation in $7.7 billion deal
28 Apr 2011
Exelon Corporation the largest operator of US nuclear power plants, has signed an agreement for the acquisition of Constellation Energy Group Inc (CEG) for about $7.7 billion. The move gives Exelon additional stakes in five reactors in Maryland and New York according to reports.
Under the transaction, Constellation shareholders would get 0.93 Exelon share for each of their shares. On the basis of Exelon's closing stock price of $41.49 yesterday, the deal would value Constellation at $38.59 a share, a 12.5-per cent premium to its closing price.
The deal is the Chicago-based Exelon's largest transaction till date.
Exelon was formed through the merger of Peco Energy and Unicom in 2000. The combined company was at the time valued at $7.14 billion.
Constellation has three nuclear plants under operation in Maryland and New York.
According to analysts, Constellation has a substantial retail marketing business and Exelon has a whole lot of wholesale power to sell.
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