October 13, 2016 - 3:33 PM
TORONTO - The Ontario Energy Board has approved Hydro One's $373-million deal to buy Great Lakes Power Transmission, which operates north and east of Sault Ste. Marie, Ont.
In late January, Hydro One (TSX:H) said it was acquiring Great Lakes from various entities controlled by Brookfield Infrastructure, which is part of a Toronto-based asset management group.
The former provincial Crown corporation announced it would pay $222 million in cash and assume $151 million of outstanding debt owed by Great Lakes, which has 15 transmission stations and 560 kilometres of transmission lines.
As all regulatory approvals are complete, Hydro One expects to close the transaction on October 31.
Great Lakes will begin to operate under the name Hydro One Sault Ste. Marie in early 2017 and will continue to operate as a standalone licensed transmitter.
Following the closing of the deal, Hydro One says it will operate about 98 per cent of Ontario's transmission grid.
News from © The Canadian Press, 2016