Hydro One deal to buy Avista receives U.S. antitrust clearance
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Hydro One-Avista Acquisition secures U.S. antitrust clearance under Hart-Scott-Rodino, pending approvals from state utility commissions, the FCC, and CFIUS, with prior FERC approval and shareholder vote supporting the cross-border utility merger.
Main Details
A $6.7B cross-border utility merger cleared under HSR, still awaiting state, FCC, and CFIUS approvals; FERC approved earlier.
HSR 30-day waiting period expired, signaling US antitrust clearance
FERC approval and Avista shareholder consent are in place
State PUC approvals pending in WA, ID, OR, MT, and AK
CFIUS and FCC reviews required; political risk highlighted
Hydro One Ltd. says it has received antitrust clearance in the United States for its deal to acquire U.S. energy company Avista Corp., even as it sought to redesign customer bills in Ontario.
The Ontario-based utility says the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired Thursday night.
Hydro One announced the friendly deal to acquire Avista last summer, amid customer backlash in some service areas, in an agreement that valued the company at $6.7 billion.
The deal still requires several other approvals, including those from utility commissions in Washington, Idaho, Oregon, Montana and Alaska.
Analysts also warned of political risk for Hydro One during this period, reflecting concerns about provincial influence.
The U.S. Federal Communications Commission must also sign off on the transaction, and although U.S. regulators later rejected the $6.7B takeover following review, clearance is required by the Committee on Foreign Investment in the United States.
The agreement has received approval from the U.S. Federal Energy Regulatory Commission as well as Avista shareholders, and it mirrored other cross-border deals such as Algonquin Power's acquisition of Empire District that closed in the sector.
