Deals
Hydro One Falls as Investors Sour on Avista's $3.4 Billion Price
- Acquisition exposes Canadian company to U.S. regulatory issues
- Utility follows Fortis in seeking higher returns abroad
Hydro transmission lines in a hydro corridor running through Mississauga and Milton.
Photographer: Chris So/Toronto Star via Getty ImagesThis article is for subscribers only.
Hydro One Ltd. fell the most in eight months after agreeing to buy U.S. power supplier Avista Corp. in a $3.4 billion deal that analysts said is too costly and exposes the Canadian energy company to regulatory hassles.
The merger will add Avista’s energy production and distribution operations in Washington, Idaho, Oregon and Alaska to Hydro One’s transmission network in Ontario, creating one of North America’s largest regulated utilities, with assets totaling C$32 billion ($25.4 billion). Avista stockholders will receive $53 a share in cash, 24 percent above the market close Tuesday.