ST. JOHN’S, N.L. – Fortis Inc. (TSX:FTS), one of Canada’s largest utility companies, has received regulatory approval in the U.S. to move ahead with its acquisition of UNS Energy Corp.
The company, which operates power and gas utilities in several provinces and U.S. states, says the Washington-based Federal Energy Regulatory Commission gave the deal the green light, finding that it was “consistent with the public interest.” The purchase of UNS is valued at $4.3 billion, including $2.5 billion cash plus assumed debt
Shareholders of UNS Energy, an Arizona-based electricity and gas utility company, already approved the purchase at the end of March.
The acquisition, which is expected to close later this year, is still subject to regulatory approval from the state, and subject to other reviews.
Fortis says about one-third of its assets will be in the United States once the UNS deal closes and it will gain 650,000 customers in Arizona — part of the company’s strategy of geographic diversification.