Status:  Clearance

 

Acquirer: Fortis, Inc. (Canada)

Acquired:  ITC Holdings Corp. (U.S.)

Value:  US$11.3 billion

Industry:  Energy

 

stock-photo-62614978-high-voltage-wire-tower-at-duskFortis announced that on July 8, 2016, the parties received CFIUS clearance with written confirmation from CFIUS that there are no unresolved national security concerns with respect to the transaction and that the action under Section 721 of the Defense Protection Act of 1950, as amended, is concluded with respect of this transaction. (See Fortis press release here.)

ITC Holdings is the largest independent electric transmission company in the United States. Fortis, a Canadian based company, already operated in the North American electric and gas utility business.   The deal was announced on February 9, 2016 in press releases (ITC holdings press release available here; Fortis press release available here).  The press release noted several deal rationales, including providing necessary capital investment for the “aging U.S. electric transmission sector to improve reliability, expand access to power markets, allow new generating resources to interconnect to the transmission system and lower the overall cost of energy delivery.”