Constellation Energy Corporation dropped over 4% on Wednesday following reports it was on the cusp of agreeing to a takeover of gas and geothermal firm Calpine.
According to Bloomberg, Constellation was in advanced talks over the cash and stock deal, which would value Calpine at US$30 billion including debt.
Constellation is the US’ largest owner of nuclear power plants, while Calpine operates 78 gas and geothermal facilities across North America.
Shares in the former have gained in recent months on speculation of deals with artificial intelligence firms for its existing nuclear energy to power data centers.
Calpine has also seen energy demand in key markets, such as Texas where it operates 12 power plants, fuelled recently on data center development and extreme weather.
Energy Capital Partners, Canadian Pension Plan Investments and Access Industries had taken Calpine private through a US$17 billion deal in 2017.
A deal, which would mark one of the largest ever in the power generation sector, could be announced in the coming weeks, Bloomberg-cited sources said.
Constellation shares dropped 4.6% to US$244 on the reports.