Hydro One signs US$5.3 billion deal to buy Avista

Ontario's largest power transmitter and distributor says it has signed a friendly deal to acquire U.S. company Avista Corp. for US$5.3 billion (CA$6.7 billion) in an all-cash deal.

Hydro One said Wednesday it will pay US$53 (CA$67) per share for the utility.

Avista would keep its existing corporate headquarters in Spokane, Washington, and continue to operate as a stand-alone utility in Washington, Oregon, Idaho, Montana and Alaska.

Both companies say there will be no workforce reductions as a result of the merger.

Hydro One and Avista also say customer rates will not be affected by any of the costs associated with the transaction.