Adding Texas Divestitures, DOJ Approves $16.4B Constellation/Calpine Merger

A $16.4 billion merger that would create the nation’s largest provider of wholesale electricity cleared its final hurdle Friday with an announcement by the U.S. Department of Justice that Constellation Energy and Houston-based Calpine Energy had agreed to resolve antitrust concerns with the divestment of six power plants based in the Northeast and Texas.

The divestiture of two Texas generating plants involved in the Justice Department announcement — one in Houston and the other in Corpus Christi — come in addition to divestiture of four plants in the PJM utility region already conceded in a pact made earlier this year to gain approval by the Federal Energy Regulatory Commission.