Constellation Energy Sells To MidAmerican For $4.7B

0

MidAmerican Energy Holdings Co. has reached a tentative agreement in which MidAmerican will purchase all of the outstanding shares of Constellation Energy for a cash consideration of approximately $4.7 billion.

Upon signing the definitive merger agreement, Constellation Energy plans to issue $1 billion of preferred equity, yielding 8% to MidAmerican.

‘We strongly believe this transaction is in the best long-term interest of our investors, employees and the customers and communities we serve,’ said Mayo A. Shattuck III, chairman, president and chief executive officer for Constellation Energy. ‘The financial services sector and energy commodity markets have witnessed unprecedented volatility. Backed by the significant industry expertise and financial stability of MidAmerican and Berkshire Hathaway, Constellation Energy will build on its reputation as a first-choice energy solution provider for our many customers.’


The tentative agreement, which has been unanimously approved by the board of directors for both companies, is subject to further due diligence as well as shareholder and customary federal, state and local regulatory approvals.

‘In Constellation Energy, we have a partner that brings a world-class organization of people and an industry-leading collection of energy assets,’ says Gregory E. Abel, president and chief executive officer of MidAmerican Energy Holdings Company. ‘MidAmerican is very comfortable with, and committed to, Constellation Energy's current strategic plan. We intend, as with all of our investments, to allow Constellation Energy to operate autonomously as it pursues its long-term goals. Constellation Energy's premier fleet of nuclear assets, and its UniStar joint venture with EDF, complements MidAmerican's ongoing commitment to environmental initiatives, including investments in hydro, wind and geothermal energy.’

SOURCE: MidAmerican Energy Holdings Co.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments