Exelon Corp (EXC.N) said it will sell its three coal-fired power plants in Maryland to Raven Power Holdings for $400 million to fulfill the conditions for its merger with Constellation Energy Group Inc.
The sale of the three plants was required by the U.S. Department of Justice and the Federal Energy Regulatory Commission, Exelon said. Exelon bought Constellation for $7.9 billion in stock in 2011.
Exelon Corp said Raven Power, a new portfolio company of Riverstone Holdings LLC (RVHL.SI), will maintain the jobs at the plants with comparable pay as part of the sale agreement.
The three plants, Brandon Shores, C.P. Crane and H.A. Wagner, have a combined capacity of 2,648 megawatt.
Exelon expects the transaction to close in the fourth quarter.
Citigroup and Goldman Sachs & Co acted as financial advisors to Exelon.
Shares of Exelon, which have lost about 16 percent of their value in the past nine months, were marginally up at $38.62 on the New York Stock Exchange on Thursday.
(Reporting by Sunayan Bhattacharjee in Bangalore; Editing by Sreejiraj Eluvangal)