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February 05, 2025
Cadwalader counsel Bilal Sayyed spoke with MLex about Constellation Energy and Calpine's planned merger in an article, "Constellation’s Merger Remedy Lowers US Antitrust Hurdle for Calpine Buy," published February 5.
Power companies Constellation Energy and Calpine have proposed a divestiture that aims to quell the US government's potential antitrust concerns for the planned merger. The divestiture was outlined in a merger application submitted to the Federal Energy Regulatory Commission.
"[The proposal] is not necessarily going to stop the agency from doing its investigation, but it can show that the parties are serious about getting this done with limited delay,” said Bilal. "If there are some areas where it's clear there's going to be a problem… it makes sense to be upfront about it and not waste time."
Bilal added that it would be “potentially counterproductive” for merging parties to propose a divestiture to one regulator agency that was unlikely to pass muster with another agency whose approval they needed. So, Constellation and Calpine likely designed their remedy package such that it would appeal at least somewhat to every agency vetting their merger, he said.
Read the full article here (subscription required).
