Baltimore-headquartered Constellation Energy struck a deal to acquire natural gas company Calpine for US$26.6 billion in cash and stock. The deal would make Constellation the U.S.’s “largest clean energy provider,” the company said in a press release. The transaction is expected to close within the year. (The Logic)

Talking point: Toronto-headquartered CPP Investments is selling its current 15.75 per cent position in Calpine, which will yield the pension fund US$700 million in cash and $1.9 billion in stock proceeds. Constellation’s purchase of Calpine’s natural gas plants will play a “key role” in the energy company’s transition towards cleaner sources. It positions Constellation to snag a bigger portion of Texas’s rising electricity demand, according to the company.