Constellation Energy Corp, the largest producer of clean, carbon-free energy in the United States, said on Thursday that it would acquire NRG Energy Inc’s 44% stake in the South Texas Project Electric Generating Station – a 2,645-megawatt, dual-unit nuclear plant located 90 miles southwest of Houston.
The deal is valued at $1.75 billion, while the effective purchase price stands at $1.4 billion after taking into account Constellation’s present value of tax benefits, the company said.
The transaction is subject to approval by the Nuclear Regulatory Commission and Department of Justice.
After the deal closes, Constellation will become one of three owners overseeing the South Texas Project Nuclear Operating Company, which will continue to operate the plant.
“The South Texas Project is an exceptionally well-maintained plant and its ability to produce resilient, carbon-free energy 24/7 makes it among the most valuable power sources in the world,” Joe Dominguez, President and Chief Executive Officer of Constellation, said in a press release.
“With the potential to run for at least 46 more years with the right policy support, we look forward to working with the South Texas Project’s other owners to continue bringing clean, reliable electricity to this growing region for decades to come,” the CEO added.
BofA Securities served as Constellation’s exclusive financial advisor, while Sidley Austin LLP was the lead transaction counsel.
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