Hydro One of Canada and Avista of Spokane, Wash., have agreed to merge in a $5.3 billion deal.
In the all-cash deal, Avista shareholders would receive $53 per common share, a 24% premium to Avista’s July 18 closing price. Hydro One shares fell on the announcement, as some analysts said the Canadian utility overpaid for the acquisition.
Hydro One said the transaction would add to its earnings per share in the mid-single digits in the first full year of operation. The transaction is expected to close in the second half of 2018.