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25 October 2006 -- FPL Group, Inc. and Constellation Energy announced they have reached an agreement to terminate their plans to merge. Constellation Energy initiated a request to end the planned merger, citing continued uncertainty over regulatory and judicial matters in Maryland and the potential for a protracted and open-ended merger review process.
The failed merger plans follow a recent announcement regarding another failed merger in the U.S. utility sector between Exelon Corp. and Public Services Enterprise group, also canceled due to regulatory uncertainties.
FPL announced its intent to merge with Constellation in December 2005 with the value of the deal at the time at $11 billion. Around that time, many merger announcements were made, but so far only one has succeeded. Duke Energy Corp. bought out Cinergy in April 2006 after North Carolina regulators approved the deal.
Mayo A. Shattuck III, chairman, president and CEO of Constellation Energy, said, "As we considered the situation in Maryland, we determined the risks and uncertainties were too significant to overcome."
The two companies said that they will formally withdraw merger approval applications pending before the Maryland Public Service Commission, the Federal Energy Regulatory Commission and other relevant agencies, as well as legal requests filed with the state of Maryland.
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