Constellation Energy reportedly in merger talks with Exelon

Exelon Corp. is in talks aimed at buying Constellation Energy Group Inc., several media outlets reported on Wednesday.

The Wall Street Journal reported that the deal would value Constellation shares at roughly $8.1 billion.

Exelon spokesman Paul Elsberg says the Chicago-based nuclear power company is open to chances to add to shareholder value. But he declined to comment on any specific deal. Constellation, an energy provider and utility based in Baltimore, did not immediately respond to a message seeking comment.

Constellation shares jumped $3.05— nearly 9 percent — to $37.35 in late trading, after gaining $1.37, or 4.2 percent, to $34.30 in the regular session. Exelon shares rose 32 cents to $41.49 in the regular session and fell 27 cents in after-hours trading.

Exelon has twice tried to do mergers in recent years and failed.

Exelon Chairman and CEO John Rowe was asked about potential mergers on a conference call earlier Wednesday to discuss its first-quarter earnings. He said consolidation makes sense in his industry.

“We always look, and we’re as cold-blooded as it can be when it comes down to the economics,” he said. “We won’t overpay for a deal and we won’t enter transactions that give away all of our upside to a power market recovery. It’s really important to us.”

Exelon reported that its first-quarter net income fell 11 percent to $668 million on hedging losses and other charges. Revenue rose 13 percent to $5.05 billion.

Leave a Reply

Your email address will not be published. Required fields are marked *