Fortis buying US electric transmission company for $11.3B

Adding ITC's high-voltage transmission lines in seven states to holdings.

ST. JOHN’S, NL — Fortis Inc. has a friendly deal to buy US 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, NL.

About 27% 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 US 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.

© 2016 The Canadian Press

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