Exelon Corp. (EXC) is trying to pull off its largest takeover by acquiring more nuclear power plants — less than two months after the industry’s worst disaster since Chernobyl.
The biggest U.S. operator of nuclear power facilities agreed to purchase Constellation Energy Group Inc. (CEG) of Baltimore for about $7.9 billion in stock, giving the Chicago-based company stakes in five more reactors. Including net debt, the transaction would be Exelon’s first acquisition over $1 billion since 2002 after three deals fell apart in the past seven years, according to data compiled by Bloomberg.
While Exelon faces its biggest decline in earnings in a decade next year as higher-priced power contracts that it sold expire, Constellation’s nuclear assets will help Exelon boost profitability as environmental regulations increase costs for energy producers that own coal plants, according to Manulife Asset Management U.S. LLC’s Greg Phelps.
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