Divestitures address Competition Bureau concerns, as TransAlta adjusts Heartland acquisition terms
TransAlta Corp. has adjusted its acquisition of Heartland Generation Ltd. to address concerns raised by the Competition Bureau over competition in Alberta and British Columbia's power generation markets, reports BNN Bloomberg.
To resolve these issues, TransAlta will sell Heartland’s Poplar Hill and Rainbow Lake electricity generating facilities in Alberta.
The sales will proceed to one or more independent buyers, subject to approval by the Commissioner of Competition.
These divestitures have resulted in TransAlta and Energy Capital Partners, Heartland’s seller, agreeing to reduce the purchase price by $80m.
The revised transaction now stands at $542m, which includes the assumption of $232m in debt.
After the deal closes, the purchase price will decrease further by about $80m to reflect the economic benefit generated by Heartland's business since October 31, 2023.
This adjustment is consistent with the original terms of the agreement and will be payable to TransAlta.
Energy Capital Partners will retain proceeds from the sales of the Poplar Hill and Rainbow Lake facilities, with certain adjustments applied.
The updated terms aim to balance regulatory compliance with the completion of TransAlta’s acquisition.
