Florida’s FPL Group and Constellation Energy have announced a merger agreement that will create the largest competitive energy supplier and the second-largest electric utility in the USA.
The transaction will create a company with a market value of approximately $28 billion, combined annual revenues of $27 billion, and $57 billion in total assets. The combined company will be named Constellation Energy.
Under the merger agreement, which was unanimously approved by both boards, each share of Constellation Energy outstanding immediately prior to the merger will be converted into 1.444 shares of the merged group and each share of FPL will be converted into one share of the merged company, leaving FPL and Constellation shareholders with approximately 60% and 40% of the combined company respectively.
The combined company will have the nation's largest generation portfolio with more than 45,000MWe of capacity and will be the third-largest nuclear operator in the USA, owning and operating seven nuclear stations with eleven reactors, including FPL Group's pending acquisition of the Duane Arnold nuclear station.
The merged group will have approximately 21,750 employees and more than 5.5 million electric customers in Florida and Maryland and 625,000 gas customers in Maryland.
The transaction is expected to be accretive to both companies in the first full year of combined operations.
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