Constellation Energy (CEG) stock soared on Friday, January 10, 2025, following the announcement of a $26.6 billion deal to acquire rival energy producer Calpine. The acquisition, valued at approximately $16.4 billion in equity and $10.2 billion in cash, plus the assumption of about $12.7 billion in Calpine net debt, is expected to create the nation's largest clean energy provider. The deal is set to close within a year, subject to regulatory approvals.



The acquisition will add Calpine's low-emission natural gas plants and geothermal generation fleets to Constellation's unmatched expertise in zero-emission nuclear energy, enabling the combined company to offer the broadest array of energy products and services available in the industry. This expanded portfolio will better serve customers coast-to-coast, from families to businesses and utilities, with a broader array of customized energy and sustainability solutions.



The deal is expected to deliver immediate adjusted (non-GAAP) operating earnings per share (EPS) accretion of more than 20% in 2026 and at least $2 per share of EPS accretion in future years. Additionally, the transaction is projected to add more than $2 billion (non-GAAP) of free cash flow annually, creating strategic capital and scale to reinvest in the business.

Constellation's CEO, Joe Dominguez, stated, "By combining Constellation’s unmatched expertise in zero-emission nuclear energy with Calpine’s industry-leading, best-in-class, low-carbon natural gas and geothermal generation fleets, we will be able to offer the broadest array of energy products and services available in the industry." This acquisition aligns with Constellation's strategic goals of expanding its generation capacity and geographic reach, further solidifying its position as a leading energy provider.



The combined company will have nearly 60 gigawatts of capacity from zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, cogeneration, and battery storage. This acquisition will create the nation's leading competitive retail electric supplier, providing 2.5 million customers with a broader array of customized energy and sustainability solutions and new product offerings to help them manage energy costs and achieve their sustainability goals.

In conclusion, Constellation Energy's acquisition of Calpine is a strategic move that will expand its energy portfolio, enhance its competitive position, and drive long-term growth. The deal is expected to deliver significant synergies and cost savings, further solidifying Constellation's status as a leading energy provider in the United States.