EDF Withdraws Opposition to Exelon-Constellation Merger in U.S.

Electricite de France SA withdrew 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, EDF Chief Financial Officer Thomas Piquemal said in a statement today.

“We are pleased to have reached an agreement with Exelon that protects Constellation Energy Nuclear Group’s operational independence moving forward,” Piquemal said. EDF holds 7.2 percent of Constellation shares.

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. Today’s agreement will be filed with the Maryland Public Service Commission ``shortly,’’ EDF said.

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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