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Paul, Weiss Successfully Settles Dispute Between EDF and Exelon Corporation in Regulatory Proceedings Before Maryland Public Service Commission
Paul, Weiss client Electricite de France S.A., (EDF), the largest nuclear energy company in the world, announced today that it reached a settlement with Exelon Corporation and Constellation Energy Group in a regulatory proceeding before the Maryland Public Service Commission (PSC) involving the proposed $8 billion merger of Exelon and Constellation. Paul, Weiss represented EDF in the hearings before the Public Service Commission, as well as in the settlement negotiations.
EDF, which owns more than seven percent of Constellation's common stock, actively opposed the merger during three weeks of hearings before the PSC, arguing that the merger failed to satisfy the broad Maryland public interest standard and that it threatened the integrity of Constellation Energy Nuclear Group (CENG), EDF's Maryland-based nuclear joint venture with Constellation. The Maryland Public Service Commission's approval is critical to consummation of the merger.
The settlement agreement protects the operational autonomy of EDF's joint venture in CENG in exchange for EDF's agreement to withdraw its opposition to the merger between Exelon and Constellation. The settlement agreement addresses virtually all of the key issues that EDF had sought from the proceeding, including protections against potential conflicts of interests between CENG and Exelon, and confirms that Exelon shall take no action that infringes on CENG as an autonomous board-managed enterprise without the consent of EDF.
The Paul, Weiss team included litigation partner Martin Flumenbaum and corporate partner Steven J. Williams.
