Constellation Energy on Tuesday dealt its disputes with Electricite de France, the French utility major by selling off half of the joint venture to develop new nuclear power plants. The company also withdrew its threat of exercising an option which will force EDF to buy a dozen aging fossil fuel plants from Constellation and other firms.

Under the treaty EDF had agreed to pay a sum of one hundred and forty million dollars and also give back three decimal five million Constellation shares owed by EDF. The price at which the shares closed on Tuesday was worth one hundred and ten million dollars.

According to sources who are aware of the negotiation stated that one hundred and forty million dollars has covered the stake of Constellation in the UniStar project and three decimal five million dollars will settle the dispute of the purchase of age-old fuel plants.

In addition EDF received four tracts of land from Constellation at its existing nuclear factories where new reactors can be installed by EDF. Two of the plants are located at Calvert Cliffs of Maryland site and the other two are located in New York’s Nine Mile Point and R. E. Ginna.

EDF won’t be representing the Constellation board anymore.

With the deal in effect EDF can install a third nuclear reactor in the Calvert Cliffs nuclear power plant and can try to obtain Federal loan guarantees that can help the company to lower its costs of finance.

Sources familiar with the deal stated that the French Utility giant that runs more than eighty nuclear plants all across the globe would look for one American partner for its project of Calvert Cliffs so that it can obtain the US Federal loan guarantee easily.