Constellation, EdF complete $4.5B joint venture

BALTIMORE

Constellation Energy and French energy company EdF said Friday that they have completed their joint venture in which EdF will buy nearly half of Constellation's nuclear business for $4.5 billion.

Conclusion of the deal wraps up a tumultuous year for Constellation in which it was almost put into bankruptcy and included a lifeline from Warren Buffett's Berkshire Hathaway.

Constellation's nuclear business includes three nuclear power stations with five reactors in Maryland and New York. Nuclear power accounts for more than half of Constellation's total electricity generating capacity.

The deal between the two was announced last December and scuttled an agreement between Berkshire Hathaway unit Mid-American Energy Holdings of Des Moines, Iowa, in which Mid-American was going to buy all of Constellation for $4.7 billion.

A liquidity crisis as the nation's financial system was imploding in September 2008 nearly pushed Constellation into bankruptcy. Mid-American's offer for Constellation provided stability, but angered shareholders who thought it was too cheap.

Government controlled Electricite de France SA, the world's biggest nuclear power company that already owned 9.5 percent of Constellation, then made what Constellation said was a better offer. It allows Constellation to remain an independent company while deepening ties the two have to jointly develop new nuclear operations in the U.S.

The last hurdle to the deal came a week ago when Maryland regulators signed off on the deal. Baltimore-based Constellation is the parent of utility Baltimore Gas and Electric.

Constellation shares fell 26 cents to $32.51 in trading Friday afternoon. The shares have traded between $15.05 and $33.87 over the past year.