Constellation Energy to buy stake in Texas nuke plant from NRG in $1.75B deal
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Constellation Energy (NASDAQ:CEG) said Thursday it agreed to acquire NRG Energy's (NYSE:NRG) 44% ownership stake in the South Texas Project Electric Generating Station for $1.75B in cash and debt; it said the effective purchase price is $1.4B after taking into consideration the present value of tax benefits to the company.
One of the newest and largest nuclear plants in the U.S., the South Texas Project is a 2,645 MW, dual-unit nuclear plant located 90 miles southwest of Houston, generating enough power for 2M average homes.
NRG Energy (NRG) said it authorized an additional $650M in stock buybacks to begin upon the closing of the deal; combined with $350M remaining in its existing buyback program, the total repurchase authorization will rise to $1B.
Constellation (CEG) will be one of three owners with oversight of the South Texas Project Nuclear Operating Company, which will continue to operate the plant.
The company has ownership interests in 13 generating stations with 23 nuclear units capable of producing 21K MW of electricity, enough clean energy to power 15M homes.
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