CHICAGO (dpa-AFX) - Electric utility Exelon Corp. (EXC), which is in $7.9 billion deal to buy peer Constellation Energy Group, Inc. (CEG), on Tuesday said the companies reached an agreement with French utility Electricite de France or EDF (ECIFF.PK)regarding the operational autonomy of Constellation-EDF joint venture Constellation Energy Nuclear Group or CENG. Under the agreement, which reaffirms the terms of the joint venture, EDF will withdraw its opposition to the Exelon-Constellation merger. Exelon noted that no payment was made by either party associated with this agreement. CENG is a 50.01/49.99 joint venture between Constellation Energy and EDF that owns and operates three nuclear facilities with five generating units in Maryland and New York. EDF Group Chief Financial Officer and Head of North America Thomas Piquemal said, 'After the initial announcement of the Exelon-Constellation merger, EDF made clear that it could not support a merger that put the integrity of its investment in CENG at risk. After a lengthy regulatory review process in which we actively participated, we are pleased to have reached an agreement with Exelon that protects CENG's operational independence moving forward.' Exelon President and COO Christopher Crane said, 'We are pleased to come to agreement with EDF, a significant Constellation shareholder, as well as our future partner on the CENG nuclear joint venture. This agreement reflects additional positive momentum toward the timely consummation of our merger with Constellation.' It was in April last year that Exelon and Constellation agreed to combine the two companies in a stock-for-stock transaction then valued at $38.59 per share or $7.9 billion. The merger has already received approval by the Department of Justice, the New York Public Service Commission, the Public Utility Commission of Texas and the shareholders of Exelon and Constellation. The merger also requires regulatory approvals by the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission and the Maryland Public Service Commission. Exelon noted that in a December 15th merger settlement, Exelon, Constellation and Baltimore Gas and Electric Co. agreed to provide a package of benefits totaling more than $1 billion and expected to create more than 6,000 jobs in Maryland. The company noted that the planned merger will combine Exelon's environmentally advantaged generation fleet with Constellation's industry-leading customer-facing businesses. EDF, in its statement, said the comprehensive agreement is expected to be filed with the Maryland Public Service Commission shortly. In Friday's trading, EXC closed at $39.74, down $0.44 or 1.10 percent, and CEG closed at $36.23, down $0.49 or 1.33 percent. In Paris, EDF is currently trading at 18.01 euros, up 0.20 euros or 1.12 percent.
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