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Constellation's stock soared on AI hopes. Now the energy company is using those gains to buy Calpine in $16 billion deal.


Published on 2025-01-10 16:01:05 - MarketWatch
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  • Constellation Energy Corp., an electricity provider whose stock has doubled over the last year on hopes it will help meet the voracious energy demand created by artificial-intelligence technologies, on Friday reached a $16.

Constellation Energy Group Inc. has agreed to acquire Calpine Corp. for approximately $16 billion, including debt, in a deal that merges Constellation's nuclear power operations with Calpine's natural gas generation capabilities. This acquisition aims to create a more diversified energy company capable of meeting the growing demand for electricity with a mix of nuclear, natural gas, and renewable energy sources. The deal, announced on a recent Monday, will see Constellation, which already has a significant presence in nuclear power, expand its portfolio to include Calpine's extensive natural gas facilities, enhancing its capacity to provide stable, low-carbon energy solutions. The merger is expected to leverage the complementary strengths of both companies, potentially leading to operational efficiencies and a stronger competitive position in the energy market.

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