Avista Hydro One Merger is Terminated
by Shari Dovale
In a joint statement issued Wednesday, the merger agreement was canceled as they did not believe they could overturn the denials from Idaho and Washington in a timely manner. The companies were facing a March 29 deadline to complete the transaction.
In response to today’s announcement, Norm Semanko, attorney for the Avista Customer Group, stated on Facebook:
“Avista Customer Group applauds the decision to terminate the proposed merger. It has been obvious for sometime now that the merger was not going to be approved. In the end, Hydro One of Toronto, Canada, controlled as it was by the Province of Ontario, was just not a good fit for Avista and its customers. We are glad this chapter is over and look forward to the continued, affordable and reliable service that our members have come to expect locally from Avista.”
Hydro One and Avista Mutually Agree to Terminate Merger Agreement
Jan 23, 2019
TORONTO and SPOKANE, WA, Jan. 23, 2019 /CNW/ – Hydro One Limited (“Hydro One”) (TSX: H) and Avista Corporation (“Avista”) (NYSE: AVA) today announced that the companies have mutually agreed to terminate their previously announced merger agreement. This decision follows the recent orders by the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission which denied approval of the merger. After careful consideration and analysis of the likelihood of achieving a timely reversal of those orders, the Boards of Directors of Hydro One and Avista each individually determined that termination of the merger agreement is the best course of action for the companies and their respective shareholders.
Paul Dobson, acting President and CEO of Hydro One said, “Hydro One’s Board, management and employees remain focused on delivering safe and reliable power, providing exceptional customer service and driving shareholder value. On behalf of Hydro One, I would like to thank the teams who have worked tirelessly on the proposed merger throughout this process.”
Scott L. Morris, Chairman of the Board and CEO of Avista, said, “While disappointed with the outcome, I want to express our deepest gratitude to everyone who worked with us on this effort over the past 18 months. Avista is a strong, vibrant, and independent utility, and we look forward to building on our legacy of nearly 130 years by continuing to serve the best interests of our most important stakeholders—our valued customers, loyal employees, the communities we serve, and our shareholders.”
As required by the merger agreement, Hydro One will pay Avista a US$103 million termination fee as a result of the termination of the merger agreement.
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