US energy group Fortis has entered into a definitive agreement with Singapore’s sovereign wealth fund GIC to sell GIC a 19.9% equity interest in ITC, the largest independent electric transmission company in the United States, for US$1.2bn; in February 2016, Fortis reached an agreement to acquire ITC for around US$11.3bn.
Fortis is a leader in the North American electric and gas utility business with more than 3 million customers across Canada, the United States and the Caribbean and long-term contracted hydropower assets in British Columbia (Canada) and Belize.
Through its regulated operating subsidiaries ITC Transmission, Michigan Electric Transmission Company, ITC Midwest and ITC Great Plains, ITC owns and operates high-voltage transmission facilities in the States of Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma, serving a combined peak load exceeding 26 GW along approximately 15,600 circuit miles (25,105 km) of transmission lines. ITC is also developing the ITC Lake Erie Connector transmission line, a 1,000 MW bi-directional, 320 kV HVDC merchant transmission line, that would connect converter stations located in Erie, Pennsylvania and Nanticoke, Ontario (Canada).
In addition to the necessary state approvals, the closing of the acquisition is subject to ITC and Fortis shareholder approvals, the satisfaction of other customary closing conditions, and certain regulatory and federal approvals. The closing of the acquisition is expected to occur in late 2016.
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