French utility EDF has withdrawn its opposition to a merger between Exelon Corp. (EXC) and Constellation Energy (CEG) after reaching an agreement with the U.S. utilities on the future of a nuclear power venture.
EDF, Constellation’s partner in five U.S. nuclear reactors, initially opposed the merger on concern it would put “the integrity of its investment” at risk, said Bloomberg.
Exelon’s purchase may “have implications for the development of new power generation capacity in the region” because the combined company would hold such a large share of the market, EDF said in October.
EDF was concerned Exelon would have “strong incentives” to discriminate against the reactors it co-owns with EDF “financially, operationally and otherwise,” the Paris-based company said at the time.
The Constellation and EDF joint venture operates five nuclear plants on three sites in Maryland and New York.
For more power business news