Constellation Energy Agrees to Buy Calpine Corp for $16.4 Billion
Constellation Energy, a U.S. nuclear power provider, has agreed to buy privately held geothermal company Calpine Corp for $16.4 billion, one of the biggest acquisitions in U.S. power industry history. The cash-and-stock deal, valued at $26.6 billion including debt, will turn Constellation into the largest U.S. independent power provider.
The acquisition comes at a time of rising electricity demand, driven by the proliferation of energy-guzzling AI data centers and the electrification of transportation and buildings. Constellation CEO Joe Dominguez said that demand for the company’s products is expected to grow by levels not seen in a lifetime.
The deal will add Calpine’s low-carbon-intensity gas fleet and advancements in carbon capture technology to Constellation’s portfolio. The transaction is expected to close this year and could add $2 billion to Constellation’s free cash flow annually.
The combined company will have nearly 60 gigawatts of capacity from zero- and low-emission sources, including nuclear, natural gas, and geothermal. The acquisition will also increase Constellation’s employee base by nearly 20% to 16,500.
Shares of Constellation rose 25% to close above $305, their largest ever daily percentage gain. The deal is expected to create the largest coast-to-coast power generator, with a bigger footprint in Texas and California.