Constellation Energy to buy Calpine for $16bn in one of biggest US power moves

Core Viewpoint - Constellation Energy is acquiring Calpine Corporation for $16.4 billion, creating the largest independent power provider in the US with approximately 2.5 million customers [1][5]. Group 1: Acquisition Details - The acquisition combines two major electricity generators in the US, with the total transaction value, including debt, reaching$26.6 billion [2]. - The deal is expected to close in the second half of the year, increasing Constellation's workforce by about 20% to 16,500 [5]. - The merger will significantly enhance Constellation's market share in Texas and California, the two most populous and energy-consuming states in the US [5]. Group 2: Market Context - The acquisition comes amid rising electricity demand driven by AI data centers and electric transportation [2]. - Constellation's CEO, Joe Dominguez, indicated that demand for their products is expected to grow significantly, reaching levels not seen in a lifetime [2]. Group 3: Strategic Implications - Andrew Novotny, CEO of Calpine, stated that the deal is beneficial for American families and businesses, positioning the combined company to invest in zero-emission nuclear and battery storage [3]. - The transaction is expected to create the largest coast-to-coast power generator in the US, according to S&P's Aneesh Prabhu [5]. Group 4: Stock Performance - Following the announcement, shares of Constellation Energy rose by 23% in New York [4]. - Over the past year, Constellation's shares have more than doubled, driven by increased demand for nuclear power from big tech companies with climate-related commitments [6].