FERC delays decision on proposed US$7.9B merger between Constellation Energy and Exelon, could push back deal's completion to April
November 14, 2011
– Constellation Energy and Exelon expected an FERC approval on the $7.9 billion proposed merger by this Wednesday, but the companies said that the regulatory review period has been extended by 180 days due to a settlement agreement reached and filed in October, the Baltimore Sun reported Nov. 14.
Both companies still anticipate the deal will close by the first quarter of 2012. Exelon said it does not anticipate a delay. A letter sent on Monday by both companies to the FERC requested that regulators still act by Jan. 5 on the merger, a deadline set by Maryland Public Service Commission, which would come three months after the settlement filing.
The settlement eased concerns with the PJM Mid-Atlantic electricity grid that the merger would mean higher prices and too much market ownership and was expected to usher FERC approval according to analysts. FERC treats the settlement agreement as an amendment to the two companies’ original application, therefore restarting the review period and giving the regulators through mid-April to decide.
The primary source of this article is the Baltimore Sun, Baltimore, Maryland, Nov. 14, 2011.