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Exelon Stock Plunges as It Finalizes Constellation Energy Separation

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A hazardous radiation warning sign is displayed at the reactor building of the Exelon Peach Bottom Atomic Power Station in Delta Pennsylvania.
Melissa Lyttle/Bloomberg

Exelon stock tumbled nearly 30% on Wednesday after the company announced it had completed the separation of Constellation Energy, its former power generation and competitive energy business.

Exelon’s (ticker: EXC) transmission and distribution utility business will continue to trade on Nasdaq under the ticker “EXC,” while Constellation will begin regular trading on Wednesday under the symbol “CEG.”

“With the successful completion of our separation, we step forward in a strong position to serve customer needs, drive growth and social equity in the communities we serve, and deliver sustainable value as our industry continues to evolve,” said Christopher M. Crane, president and CEO of Exelon, in a press release.

Exelon serves more than 10 million customers across a large, mainly urban, service area in Delaware, the District of Columbia, Illinois, Maryland, New Jersey, and Pennsylvania.

Current Exelon shareholders will retain their current shares of Exelon stock, and also receive one share of Constellation common stock for every three shares of Exelon common stock held at close of business on Jan. 20. The transaction is tax-free to Exelon and its shareholders.

Exelon was down 29% to $41.14 on Wednesday.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

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