Why is Hydro One Buying Western US Utility?
Hydro One signs mega cash deal to buy Avista for $6.7 billion
THE CANADIAN PRESSTORONTO – Hydro One Ltd. has signed a friendly deal to acquire U.S. energy company Avista Corp. for $6.7 billion in an all-cash deal that would create one of the largest regulated utilities in North America.
The Toronto-based company said Wednesday after the close of markets that it will pay $67 per share in cash for the U.S. firm. Shares in Avista closed Wednesday at US $43.33 on the New York Stock Exchange.
“This is really a proud moment for Canadians as we grow our business to become a North American leader,” said Hydro One CEO Mayo Schmidt during a press conference, adding Hydro One will be a more valuable company because of the transaction.
“This merger agreement allows for more robust expansion into new lines of business and into new jurisdictions, including the Pacific Northwest, which is experiencing customer growth,” he said.
