Berkshire Hathaway Energy has agreed to acquire SNC-Lavalin’s subsidiary AltaLink for about CAD3.2bn ($2.9bn).
Established in 2002, AltaLink owns over half of the transmission grid in the Canadian province of Alberta and serves 85% of its population.
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The transaction adds about 12,000km of transmission lines and 280 substations to Berkshire Hathaway’s portfolio, which currently includes around 284,000km of transmission and distribution lines in the US.
AltaLink had CAD5.9bn ($5.3bn) of assets as of 31 December 2013 and generated revenues of CAD534.1m ($487m).
AltaLink said will continue to operate as a separate company under Berkshire Hathaway Energy with its current name and will continue to be headquartered in Calgary.
Berkshire Hathaway Energy chairman, president and CEO Greg Abel said the acquisition of AltaLink represents a long-term opportunity to invest in Alberta’s critical transmission infrastructure and in Canada.
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By GlobalData"AltaLink’s values align with our core principles, including the commitment to employees and their safety, customers, regulators and relationships with key stakeholders," Abel said.
The transaction, which is anticipated to be completed by the end of 2014, is subject to regulatory approval from the Alberta Utilities Commission.
SNC-Lavalin president and chief executive officer Robert Card said the sale of AltaLink will provide opportunities to advance the company’s E&C growth strategy.
"The use of capital will be determined based on the best long-term interests of SNC-Lavalin," Card said.
SNC-Lavalin and Berkshire Hathaway Energy’s subsidiary, MidAmerican Transmission, have also mutually agreed to develop engineering, procurement and construction opportunities in the US and Canada on transmission projects.
Image: The transaction adds about 12,000km of transmission lines and 280 substations to Berkshire Hathaway’s portfolio. Photo: courtesy of Berkshire Hathaway Energy.
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