Exelon Corp. and Constellation Energy Group have reached an agreement with Electricite de France, a large Constellation shareholder, for the French utility to withdraw its opposition to a proposed merger between the companies.
The terms of the agreement address Constellation Energy Nuclear Group, a joint venture between Constellation and EDF that owns and operates three nuclear facilities with generating units in Maryland and New York. No payment was made by either party associated with the agreement, which reaffirms the terms of the joint venture.
Removing EDF's objections paves the way for the merger to move forward. The transaction has already received approval from the U.S. Department of Justice, the New York Public Service Commission, the state of Maryland, the city of Baltimore and others.
To win approval, Exelon and Constellation, the parent of Baltimore Gas and Electric Co., agreed to provide a package of benefits worth more than $1 billion and expected to create more than 6,000 jobs in Maryland.
"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," Exelon President and Chief Operating Officer Christopher Crane said in a statement. "The agreement reflects additional positive momentum toward the timely consummation of our merger with Constellation."