Constellation receives FERC approval for Calpine acquisition

BALTIMORE - Constellation Energy Corporation (NASDAQ:CEG), with a market capitalization of $101.45 billion, announced Thursday it has received regulatory approval from the Federal Energy Regulatory Commission (FERC) for its planned acquisition of Calpine Corporation. According to InvestingPro analysis, the company appears to be trading near its Fair Value.

The approval marks a significant step forward in Constellation’s acquisition process, following earlier approvals from the New York Public Service Commission and the Public Utility Commission of Texas. The transaction still requires clearance from the Department of Justice and other customary closing conditions before completion.

"We appreciate FERC’s timely attention, review and approval of this transaction," said Joe Dominguez, president and CEO of Constellation, in a press release statement.

The acquisition is expected to close in the fourth quarter of 2025, according to the company.

Constellation, a Fortune 200 company headquartered in Baltimore, describes itself as the nation’s largest producer of emissions-free energy. The company supplies energy to businesses, homes, and public sector customers nationwide, including three-fourths of Fortune 100 companies.

The acquisition aims to strengthen Constellation’s position in the energy market as electricity demand increases across the country. The company stated the combination would enhance its ability to serve industries and communities with clean power.

Constellation Energy Corporation is listed on the Nasdaq exchange under the ticker symbol CEG.

In other recent news, Constellation Energy has received regulatory approval from both the New York State Public Service Commission and the Public Utility Commission of Texas for its acquisition of Calpine Corporation. This merger is expected to combine Constellation’s nuclear fleet with Calpine’s natural gas and geothermal assets, creating a significant energy provider across the United States. In the financial realm, Jefferies has raised its price target for Constellation Energy to $293, maintaining a Hold rating, while highlighting the increased implied data center value. Mizuho has also adjusted its price target upward to $325 ahead of the PJM auction, retaining a Neutral rating. Meanwhile, KeyBanc continues to hold an Overweight rating with a price target of $337, viewing the PJM auction results as favorable for Constellation Energy. These developments underscore the company’s strategic moves and market evaluations, reflecting its evolving position in the energy sector.

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