MidAmerican Energy completes due diligence of Constellation Energy

By Lisa Kerner

Charlotte, N.C., Oct. 2 - MidAmerican Energy Holdings Co. completed the 14-day due diligence of Constellation Energy Group, Inc.'s retail and wholesale businesses, it was announced on Thursday.

"With MidAmerican's affirmation of the stability and underlying strength of Constellation Energy and the recent infusion of $1 billion to increase our liquidity, we are now poised to successfully complete the merger approval process," Constellation Energy chairman, president and chief executive officer Mayo A. Shattuck III said in a company news release.

The transaction is expected to close in nine to 12 months, MidAmerican said.

In September, the boards of directors of MidAmerican and Constellation Energy approved a definitive merger agreement in which MidAmerican will acquire Constellation Energy for approximately $4.7 billion, or $26.50 cash per share

Constellation Energy, a Baltimore energy products provider, said it will issue $1 billion of preferred equity yielding 8% to MidAmerican as agreed under the companies' tentative agreement.

MidAmerican Energy is an energy services provider. The company is located in Des Moines.

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