MidAmerican agrees to buy Constellation

MidAmerican Energy Holdings has reached a tentative agreement to acquire Constellation Energy for some $4.7 billion. The companies expect to enter a definitive merger agreement tomorrow. Pending shareholder and regulator approval, the deal is expected to close by mid-2009. Constellation describes itself as a major generator of electricity in the US, owning 83 electricity generating plants across the country, with a combined generating capacity of some 9000 MWe. More than 60% of its generating output is from nuclear power plants – its nuclear generation division operates five reactors at three sites (Nine Mile Point and R E Ginna in New York; and Calvert Cliffs in Maryland). Constellation, through its Baltimore Gas and Electric (BGE) subsidiary, is also one of the USA's largest wholesale power sellers. Electricité de France (EdF) recently increased its stake in Constellation to 9.5%. MidAmerican is a subsidiary of Berkshire Hathaway, whose chairman is philanthropist Warren Buffett.

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