FERC Approves EDF Purchase Of Constellation Energy Stake
February 19 2009 - 11:09AM
Dow Jones News
The Federal Energy Regulatory Commission Thursday authorized
Electricite de France's (1024251.FR) $4.5 billion purchase of
nearly half of Constellation Energy Group Inc.'s (CEG) nuclear
business.
The agreement with the state-controlled company will keep
Constellation a publicly traded company. The agreement includes an
immediate $1 billion cash investment by EDF and an option for the
French company, the world's largest nuclear operator, to buy up to
$2 billion of Constellation Energy's non-nuclear power plants.
FERC said the Commission approved the terms of an agreement that
gives Constellation Energy the option but not the obligation to
sell its ownership interests in various non-nuclear generating
plants and associated assets to EDF at agreed prices totaling up to
$2 billion.
The closing of the sale of the 49.9% ownership interest in
Constellation Nuclear is expected in late 2009. The put options
relating to Constellation Energy's non-nuclear assets will remain
in effect until the end of 2010, FERC said.
The companies also agreed to give EDF the right to nominate one
director to Constellation Energy's board, expanding the board from
12 to 13 directors.
-By Ian Talley, Dow Jones Newswires; 202-862-9285;
ian.talley@dowjones.com