Constellation Energy to Acquire Calpine in Landmark $26.6 Billion Deal
In a move set to reshape the US energy landscape, Constellation Energy has announced its intention to acquire privately-held Calpine Corp, a leading geothermal and natural gas energy company, in a cash-and-stock deal valued at $26.6 billion, including debt.
The transaction, expected to close in the second half of 2025, is poised to create a clean energy powerhouse, with the combined entity boasting nearly 60 gigawatts (GW) of capacity from zero- and low-emission sources, including nuclear, natural gas, and geothermal.
Constellation’s shares surged 8.8% on the news, as investors welcomed the prospect of increased free cash flow and a strengthened position in the rapidly evolving US energy market.
The deal comes as electricity demand is forecast to reach record highs in 2025, according to data from the US Energy Information Administration. By combining forces, Constellation and Calpine are well-positioned to capitalize on this trend and drive growth in the clean energy sector.
Calpine, an independent power producer, brings a unique advantage to the table, allowing it to sell power at market prices, unencumbered by the regulatory constraints that govern traditional utilities.
The acquisition marks a significant milestone for Constellation Energy, which is set to benefit from Calpine’s expertise in geothermal and natural gas energy production. As the US continues its transition towards a cleaner, more sustainable energy mix, this deal is likely to have far-reaching implications for the industry as a whole.
Source : Swifteradio.com
