US-based Constellation and Exelon have announced merger plans. While it has been approved by the shareholders of both companies and the union, before it can close as expected in early 2012, the merger must overcome some regulatory hurdles.
The merged company will retain the Exelon name and will be headquartered in Chicago, but the Constellation brand will stay intact and be headquartered in Baltimore where it will combine its wholesale and retail business with Exelon’s power marketing business. Baltimore will also be home for the renewable energy businesses of both companies and three utilities within the new Exelon organization will remain standalone entities.
The combined enterprise will be valued at USD 52 billion and will operate with 8% renewable power. According to Exelon chairman and CEO John Rowe, the merger creates the number one competitive energy provider with one of the industry’s cleanest and lowest-cost power generation fleets and one of the largest commercial, industrial and residential customer bases in the US.
The new entity will be the number one competitive power generator in the U.S., with 34 GW of power generation and 226 TwH of expected output, including the nation’s largest nuclear fleet with nearly 19,000 MW.
