Shares of Algonquin Power & Utilities (NYSE: AQN) have gotten pummeled over the past year, falling nearly 45%. The company has run into trouble as it seeks to execute its long-term energy transition strategy. Those issues led the company to slash its dividend to conserve cash and help balance its investment spending. 

One key to the company's strategy is acquiring Kentucky Power from AEP (NASDAQ: AEP). However, regulators might not approve that deal. While that's seemingly bad news for the company, Bank of America analyst Dariusz Lozny believes that outcome would be a positive for the beaten-down utility stock.

In October 2021, Algonquin Power & Utilities' subsidiary Liberty Utilities agreed to acquire Kentucky Power and AEP Kentucky Transmission (collectively Kentucky Power) from AEP. It initially agreed to pay $2.846 billion, including the assumption of $1.221 billion of debt. The company expected the deal to be accretive to its earnings per share in the first year and support its transition to cleaner energy. 

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Source Fool.com