Constellation Energy is acquiring Calpine Corp. for $26.6 billion, enabling it to become the largest clean energy provider in the U.S. with significant operational synergies.

Overview of the Deal

Constellation Energy, a leading renewable energy provider in the U.S., has announced its acquisition of Calpine Corp., a major producer of natural gas and geothermal electricity. The deal is valued at $26.6 billion, with an implied equity value of $16.4 billion. Constellation's unique position as the largest clean energy provider in America will be significantly enhanced through this strategic expansion, which will facilitate an increased generation output of approximately 308 million MWh, surpassing its closest competitor, NextEra Energy.

The consideration for this acquisition consists of 73% Constellation shares and 27% cash, aligning the interests of both companies and their shareholders. The acquisition is expected to lead to significant earnings per share (EPS) accretion, projected to reach 20% by 2026, with estimates of over $2 per share by 2029. Joseph Dominguez, President and CEO of Constellation, described the merger as an opportunity to combine their expertise in zero-emission nuclear energy with Calpine’s capabilities in low-carbon natural gas and geothermal generation.

Company Details (Target - Calpine Corporation)

Calpine Corporation, founded in 1984 and headquartered in Houston, Texas, is recognized as the largest provider of natural gas and geothermal power in the United States. Operating 79 energy facilities, the company boasts a total generation c