The proposed $4.7 billion merger between Baltimore-based Constellation Energy and MidAmerican Energy Holdings Co. will move forward with the completion of a 14-day due diligence of Constellation’s retail and wholesale businesses, the companies announced Thursday.
The due diligence period conducted by MidAmerican included an examination of Constellation’s trading records. The merger deal still requires approval from shareholders and federal and state regulators.
“Our 14-day due diligence was completed early, and we waived the related termination right under the merger agreement,” Gregory Abel, MidAmerican president and CEO, said in a statement. “We are pleased to be moving forward with the transaction.”
The companies announced the merger on Sept. 18 after Constellation’s credit rating was threatened by concerns over the energy trader’s liquidity. The potential rating downgrade sent Constellation’s stock value spiraling down more than 60 percent in three days that week.
