September 19, 2008
MidAmerican Energy to Acquire Constellation Energy
The MidAmerican Energy Holdings Company has reached a tentative agreement with US-based electricity supplier Constellation Energy to purchase all of the outstanding shares for a cash consideration of approximately $4.7 billion or $26.5 per share.
The companies expect to enter into a definitive merger agreement by close of business. Upon signing a definitive merger agreement, Constellation Energy will issue $1 billion of preferred equity yielding 8% to MidAmerican.
Gregory Abel, president and CEO of MidAmerican Energy, said: "In Constellation Energy, we have a partner that brings a world-class organization of people and an industry-leading collection of energy assets. We intend, as with all of our investments, to allow Constellation Energy to operate autonomously as it pursues its long-term goals."