The US Federal Energy Regulatory Commission (FERC) has conditionally authorised the Infrastructure Investments Fund’s (IIF) proposed acquisition of Texas-based utility company El Paso Electric (EPE).
IIF is set to purchase EPE for $68.25 in cash per share, representing an enterprise value of around $4.3bn.
IIF is an investment vehicle advised by JP Morgan Investment Management.
EPE is a regional electric utility, which services nearly 433,000 retail and wholesale customers in the Rio Grande valley in west Texas and southern New Mexico.
FERC explained that the deal is in line with the federal standards and the interest of the public.
EPE and IIF said in a joint statement: “We are pleased by the FERC’s order authorising IIF’s proposed acquisition of EPE. We are working diligently to file proposed mitigation that is consistent with the order.
“We look forward to the expected closing in the first half of 2020, subject to the satisfaction or waiver of other customary closing conditions.”
Approval from FERC was the last hurdle for the completion of the deal.
Both the companies anticipate the deal to complete in the first half of this year, upon FERC’s approval of the required mitigation and satisfaction or waiver of the other closing conditions.
In January this year, EPE and IIF filed an unopposed stipulation with the New Mexico Public Regulation Commission (NMPRC) regarding IIF’s proposed acquisition of EPE.