In another move in the consolidating power industry, power company Exelon Corp. will pay $7.9 billion to pick up its rival Constellation Energy Group.
Exelon, among the leading U.S. utilities and the nation’s top nuclear power company, will add 1.2 million customers to its existing 5.4 million. When the two companies unite, they will serve Maryland, Illinois and Pennsylvania.
About 55 percent of the new entity’s power generation fleets will be nuclear, 24 percent natural gas and 8 percent renewable and hydro.
Constellation will add 12,000 megawatts (MW) of generating capacity to Exelon’s nearly 32,000 MW.
“This enterprise will have the scale and financial strength to drive expansion in competitive energy markets, as well as new investment in the next wave of clean generation and sustainable products and services,” said Constellation Chief Executive Mayo Shattuck.
Exelon Chief Executive John Rowe will retire after the deal closes early next year. Exelon Chief Operating Officer Christopher Crane will become the new company’s chief executive, with Shattuck as executive chairman.
The industry has been undergoing a recent trend of consolidation with deals including Duke Energy’s $13.7 billion bid for Progress Energy, Northeast Utilities’ $4.2 billion purchase of NSTAR, and AES Corp’s $3.5 billion pact for DPL Inc.