Catenaa, Wednesday, January 15, 2025 – Constellation Energy (CEG), which surged 25% last week, announced on Friday a $16.4 billion cash-and-stock acquisition of natural gas and geothermal company Calpine Corp.
The deal cements Constellation’s position as the largest independent power provider in the US, capitalizing on rising electricity demand from AI data centers and the electrification of vehicles and buildings.
Including debt, the transaction values Calpine at $26.6 billion, marking a significant milestone in US power industry history.
The deal adds nearly 60 gigawatts of low- and zero-emission capacity to Constellation’s portfolio, including nuclear, natural gas, and geothermal sources. Calpine’s advanced carbon capture technology and low carbon-intensity natural gas fleet are key elements driving the acquisition.
The transaction is expected to contribute $2 billion annually to Constellation’s free cash flow and expand its workforce by 20% to 16,500 employees.
Additionally, it increases the company’s capacity in Texas from 15% to 25% and establishes a significant presence in California, one of the nation’s largest energy markets.
The acquisition follows a string of major deals by Constellation, including a $1 billion nuclear power contract with the US government and an agreement to supply power to Microsoft’s AI data centers by resuming operations at the Three Mile Island nuclear plant.
With the transaction set to close this year, Constellation is poised to further its leadership in the low-carbon energy space and meet surging electricity demand.
