Constellation Energy (CEG) has agreed to acquire Calpine in a cash and stock transaction valued at about $16.4 billion, the energy companies said Friday.
The transaction cost includes 50 million shares of Constellation stock, $4.5 billion in cash, and the assumption of about $12.7 billion of Calpine debt, for a net purchase price of about $26.6 billion, the companies said.
The transaction is expected to close within 12 months of signing, according to the companies.
Constellation President and Chief Executive Joe Dominguez said the deal combines his firm's expertise in nuclear energy with Calpine's natural gas and geothermal generation to offer an "array of energy products and services" to about 2.5 million customers.
Constellation shares were up about 5% in Friday's premarket activity.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.