Exelon Gets Approval for Constellation Energy Deal (EXC, CEG)

The US Department of Justice has given the go-ahead to the merger of Exelon Corp. (NYSE: EXC) and Constellation Energy Group Inc. (NYSE: CEG). The combined company is being required to divest three power plants in Maryland, which Exelon and Constellation have agreed to.

The $7.9 billion deal was first announced in April 2011, and still needs approval from state regulators in New York and Maryland, plus the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. The companies expect the deal to close finally in early 2012.

The combined companies will have generation capacity of about 35,000 megawatts, of which more than half is nuclear and only about 11% is coal-fired. An important consideration given the new clean-air rules announced yesterday by the US Environmental Protection Agency.