Fortis (NYSE:FTS) completes its biggest acquisition to date

Electric and gas utility holding company Fortis Inc (NYSE:FTS, TSE:FTS, Mkt cap 17.01B, P/E 19.28, Div/yield 0.40/3.76, EPS 1.94, Shares 399.83M) has completed its acquisition of electric transmission company ITC Holdings Corp. for approximately US$11.3bn.

Fortis is now among the top 15 North American regulated investor-owned utilities ranked by enterprise value, with an estimated enterprise value of C$42bn (US$30bn). Its utility operations serve customers in five Canadian provinces, nine U.S. states and three Caribbean countries.

“Our teams have worked tirelessly over the past year to make this acquisition happen, and we couldn’t be more pleased to welcome ITC to the Fortis group of utilities,” commented Barry Perry, president and CEO of Fortis. “The ITC acquisition is the largest in the history of Fortis, dramatically increasing our North American footprint. It establishes significant scale and a new platform in the electric transmission sector.”

The acquisition was completed after approval by the Kansas Corporation Commission — the final regulatory authorization required.

Fortis also announced last week its listing on the New York Stock Exchange in conjunction with the closing of the ITC deal. Following the merger with ITC, approximately 60% of the company’s assets are located in the United States.

Fortis received approval to list on the NYSE on May 6, 2016. Its shares commenced trading on the NYSE on October 14, 2016 under the ticker symbol ‘FTS’.

The company will retain its listing on the Toronto Stock Exchange under the same symbol.

As inter-listed shares, each Fortis common share can be traded on the Toronto Stock Exchange in Canadian dollars or on the New York Stock Exchange in U.S. dollars.

Fortis Inc (NYSE:FTS) is a St Johns NL based electric and gas utility company. The Company’s segments include Regulated Utilities and Non-Regulated Utilities. The Regulated Utilities segment includes Regulated Electric & Gas Utilities-United States, which consists of UNS Energy Corporation (UNS Energy) and Central Hudson Gas & Electric Corporation (Central Hudson); Regulated Gas Utility-Canadian, which consists of FortisBC Energy Inc. (FortisBC Energy); Regulated Electric Utilities-Canadian, which consists of FortisAlberta Inc. (FortisAlberta), FortisBC Electric and Eastern Canadian, and Regulated Electric Utilities-Caribbean, which includes its ownership interest in Caribbean Utilities Company, Ltd. (Caribbean Utilities), Fortis Turks and Caicos, and its investment in Belize Electricity Limited (Belize Electricity). The Non-Regulated Utilities segment consists of Fortis Generation and Aitken Creek Gas Storage LLC, a provider of natural gas transmission and storage services. More from Reuters » 

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