Constellation Energy has agreed to buy private energy company Calpine in a deal valued at $26.6 billion, expanding its presence in California and Texas. The acquisition is expected to create the largest clean energy provider in the US.
The move comes as demand for power from AI data centers drives the energy market. Constellation expects the combined entity to generate over $2 billion in adjusted free cash flow per year and $2 in earnings per share beyond 2026.
Under the deal, Constellation will assume Calpine’s net debt of around $12.7 billion, bringing the total purchase price to $26.6 billion. The transaction is expected to close within 12 months.
The acquisition follows a period of strong growth for energy stocks, including those from Duke Energy and NextEra Energy. Constellation shares have more than doubled in value over the past year, driven by the increasing demand for power from AI data centers, which is expected to triple by 2030.
Source: https://www.investopedia.com/constellation-energy-stock-soars-on-usd26-6b-deal-to-buy-rival-energy-producer-calpine-8772377