CHICAGO, April 28 (UPI) -- U.S. energy giant Exelon Corp. said Thursday it had agreed to merge with Constellation Energy in an all stock deal valued at $7.9 billion.
Exelon said it would keep its name and its headquarters in Chicago, while Constellation's retail and wholesale business would keep its name and be headquartered in Baltimore.
Exelon Chairman and Chief Executive Officer John Rowe said, "This merger creates the number one competitive energy provider with one of the industry's cleanest and lowest-cost power generation fleets and one of the largest commercial, industrial and residential customer bases in the United States."
The combined company would have a value of $52 billion.
The firm's energy portfolio would include 55 percent nuclear power, 24 percent natural gas-generated power and 8 percent renewable power sources, including hydro power.
In the deal, Constellation shareholders would receive a value of $38.59 per share, valuing the company at $7.9 billion. The deal, Exelon said in a statement, is an 18.1 percent premium over Constellation's closing stock value on April 27.
The executive chairman of the new company will be Constellation Chairman, President and CEO Mayo Shattuck III. Exelon President and Chief Operating Officer Christopher Crane will become the company's CEO and president, the statement said.
