Fortis to buy U.S. electric transmission company for US$11.3B
ST. JOHN’S, N.L. – Fortis Inc. has a friendly deal to buy U.S. electric transmission company ITC for US$11.3 billion.
ITC’s headquarters will remain in Novi, Mich., and all its employees will be retained to operate ITC as a stand-alone company within the Fortis group.
The deal involves a combination of cash and shares in Fortis, which is based in St. John’s, N.L.
About 27 per cent of Fortis total shares will be owned by ITC shareholders if the deal is completed as proposed.
Fortis will add ITC’s high-voltage transmission lines in seven states to holdings in several Canadian provinces, the United States and elsewhere.
Fortis is offering US$22.57 in cash – about US$6.9 billion in total – and about three-quarters of a Fortis share for each ITC share. Fortis will also assume about US$4.4 billion of debt owed by ITC.