10-25-11: Gas and Electric, Mergers and Acquisitions
Baltimore-based Constellation Energy and Chicago-based Exelon have proposed an all-stock $7.9 billion dollar merger. Exelon would end up owning over 3/4 of the new company. Constellation, of course, is the parent of Baltimore Gas and Electric.
The Maryland Energy Administration and the Office of People’s Counsel have made demands of Exelon. So has Electricité de France, which owns about half of Constellation’s nuclear unit. The Maryland Public Service Commission has to approve the deal—they start public hearings on Halloween. Constellation shareholders vote on November 17, and the deal could go through as early as the first quarter of 2012.
Scott Dance has been covering the proposed merger at the Baltimore Business Journal, where he’s a senior reporter and projects editor. He walks Nathan through the players and the possibilities of the merger.