Everything Investors Need to Know About the Avista/Hydro One Deal
Last month, electric and natural gas utility Avista Corporation (NYSE: AVA) announced that it will be acquired by Canadian utility Hydro One (TSX: H) for $5.3 billion to create one of North America's largest utilities. Here's what the new company will look like and how owners of shares will be affected.
Spokane, Washington-based Avista has been providing power to the inland Northwest for a long time. The company was founded as Washington Water Power in 1889 when utilities were still young, and is one of the smaller publicly traded utility companies remaining in the U.S.
As Avista is a major employer and the primary power provider in the greater Spokane area, there is concern from both customers and employees of the company that the change in ownership could disrupt their lives as well. Avista and Hydro One were quick to put any fears to rest. Both said that customer rates on both sides of the border would not be affected by the deal. Avista will continue to operate as an independent business under Hydro One and said no changes to its workforce were in order.
Source: Fool.com
