EDF withdraws opposition to Exelon and Constellation merger
French-based firm EDF has withdrawn its opposition to the takeover of Constellation by Exelon.
International business negotiation may no longer be needed during power firm Exelon's intended takeover of Constellation Energy Group, as French enterprise EDF has withdrawn its opposition to the proposal.
This is because it has reached a deal that secures the operating independence of the joint venture it entered into with Constellation, Reuters reports.
Last month, the US Department of Justice approved the proposed $7.9 billion (£5.14 billion) purchase Exelon intends to make of Constellation, on the condition that three electricity generating facilities in Maryland were divested to preserve the competitiveness of the market.
EDF finance head Thomas Piquemal noted the firm had made it clear it would oppose mergers that would put the integrity of its Constellation Energy Nuclear Group (Ceng) investment at risk.
"After a lengthy regulatory review process in which we actively participated, we are pleased to have reached an agreement with Exelon that protects Ceng's operational independence moving forward," he added.
Exelon president and chief operating officer Christopher Crane recently stated the firm expects the merger will be finalised at the beginning of 2012 and has already cleared the shareholders of both businesses and two state regulators.
Posted by Ron Maverick
Source: Reuters, January 17th