FPL to Buy Constellation Energy Group for $11 Bln

Edited from Bloomberg News

Florida's biggest utility, FPL Group, Inc. agreed to buy Baltimore-based Constellation Energy Group for about $11 bln. The purchase will create one of the largest independent power companies, doubling FPL's number of nuclear power plants and expanding its deregulated electricity markets.

Constellation holders will get 1.444 shares of the combined business for each of their shares, according to the merger agreement. Valued at $62.02 a share, Constellation stock has jumped about 41% this year. FPL stock has climbed 15%.  

Together, the two companies will form a new company, called Constellation, and will have dual headquarters in Juno Beach and Blatimore. It will have about 21,750 employees. FPL's Hay, 50, will be chief executive officer after the purchase is completed. Constellation CEO Mayo Shattuck, 51, will be chariman and will head the company's unregulated power business. Nine of the 15 board members will be named by FPL.