No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Baltimore-based Constellation Energy said on Friday that it has agreed to buy Calpine for $16.4bn in cash and shares.
The deal will create the largest clean energy provider in the US, said Alpine, which is already the nation's largest producer of 24/7 emissions-free electricity.
Constellation noted that Calpine is the largest US producer of energy from low-emission natural gas generation and an expanded renewable energy portfolio, including the largest geothermal generation operation in the US.
Joe Dominguez, president and chief executive of Constellation, said: "This acquisition will help us better serve our customers across America, from families to businesses and utilities.
"By combining Constellation's unmatched expertise in zero-emission nuclear energy with Calpine's industry-leading, best-in-class, low-carbon natural gas and geothermal generation fleets, we will be able to offer the broadest array of energy products and services available in the industry.
"Both companies have been at the forefront of America's transition to cleaner, more reliable and secure energy, and those shared values will guide us as we pursue investments in new and existing clean technologies to meet rising demand.
"What makes this combination even more special is it brings together two world-class teams, with the most talented women and men in the industry, who share a noble passion for safety, sustainability, operational excellence and helping America's families, businesses and communities thrive and grow."
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.