Constellation Energy Agrees to Divest Assets to Finalize Calpine Deal

By Katherine Hamilton

Constellation Energy has cleared the final regulatory hurdle for its proposed $16.4 billion acquisition of the Houston energy company Calpine.

The Baltimore energy company said Friday it reached a resolution with the Justice Department to divest several assets in order to complete the deal.

Constellation is required to divest four of Calpine's generating assets in the Mid-Atlantic, including Hay Road, Edge Moor, Bethlehem and York 1.

The company also agreed to divest York 2, a 828-megawatt natural gas-fired plant in Pennsylvania, and Jack Fusco Energy Center, a 605-megawatt facility outside Houston. It is also divesting a minority ownership interest in the Gregory Power Plant near Corpus Christi, Texas.

Constellation can start closing the deal once the court has signed the stipulation.

Since announcing the deal in January, Constellation has gained approval from the Federal Energy Regulatory Commission, the New York Public Service Commission and the Public Utility Commission of Texas.

Write to Katherine Hamilton at [e-mail]

(END) Dow Jones Newswires

12-05-25 1417ET