(Adds background, details on deal)
May 1 Berkshire Hathaway Inc's energy
unit said on Thursday it will buy AltaLink, Canada's regulated
electricity transmission company, from SNC-Lavalin Group Inc
for about $2.9 billion in cash.
AltaLink will operate as a separate company under Berkshire
Hathaway Energy with its current name and will continue to be
headquartered in Calgary, the two companies said in separate
SNC-Lavalin had said in September that it was looking to
sell its equity stake in AltaLink as part of its strategic plan
to trim ownership of infrastructure investments and monetize
AltaLink, whose assets include 280 substations and about
12,000 kilometers (roughly 7,456 miles) of transmission lines,
serves about 85 percent of Alberta's population and reported
revenue of C$534.1 million ($486.63 million) in 2013.
The deal, which has been approved by the boards of both
companies, is expected to close by the end of 2014.
Berkshire Hathaway Energy, a unit of billionaire Warren
Buffett's Berkshire Hathaway conglomerate, has also agreed with
SNC-Lavalin to jointly pursue transmission projects in North
America, the company said.
($1 = 1.0976 Canadian Dollars)
(Reporting by Sweta Singh and Aman Shah in Bangalore; Editing
by Savio D'Souza and Diane Craft)