Shares of Constellation Energy soared to record levels after the company announced its acquisition of Calpine in a deal valued at $16.4 billion. This transaction will create the largest power plant operator in the United States.
The company's stock surged by 25%, closing at an all-time high of $305 on Friday on the New York Stock Exchange, marking the largest single-day gain in the company's history.
Constellation will finance the deal through a combination of cash and shares, along with assuming Calpine’s net debt of $12.7 billion.
This acquisition comes amid expectations of a significant increase in energy consumption in the U.S., projected to grow at the fastest pace in decades. Demand is estimated to rise by 16% over the next five years, driven by the expansion of data centers supporting artificial intelligence systems, the push for electrification of homes and vehicles, and the manufacturing sector's shift away from fossil fuels.
