Constellation in Settlement Talks With DOJ Over Calpine Deal

Constellation Energy Corp. is hashing out a settlement with the US Justice Department to pave the way for the closure of its landmark $16.4 billion acquisition of closely held Calpine Corp., a deal that would create the country’s largest power fleet.

The department’s antitrust division had been weighing whether to challenge the transaction in recent months, according to people familiar with the matter. Representatives of the companies were set to meet with antitrust chief Gail Slater in early November to argue their case against a lawsuit, but the meeting was canceled after the companies made a more robust proposal to resolve the Justice Department’s concerns about competition in power markets, said the people, who asked not to be named discussing confidential deliberations.