SNC-Lavalin Group Inc. said late Thursday it has agreed to sell
its AltaLink power transmission unit in Alberta for 3.2 billion
Canadian dollars ($2.92 billion) to Berkshire Hathaway Energy.
The sale is part of the Montreal-based construction giant's plan
to move away from its infrastructure investments to focus on its
key engineering and construction operations.
SNC-Lavalin started looking at options for AltaLink, the western
Canadian province of Alberta's largest regulated electricity
transmission company, last September. At the time, it said it would
consider a private sale, public-market alternatives or a strategic
partnership.
AltaLink will operate as separate unit of Berkshire Hathaway
Energy, a unit of Warren Buffett's Berkshire Hathaway Inc., and
will continue to be based in Calgary, the companies said in a joint
release Thursday.
"The acquisition of AltaLink represents a great long-term
opportunity to invest in Alberta's critical transmission
infrastructure and in Canada," said Greg Abel, chairman, president
and chief executive of Berkshire Hathaway Energy.
The sale is subject to regulatory approvals, including Alberta
Utilities Commission and Canadian government approvals.
As part of the deal, the companies said they have also agreed to
jointly pursue transmission and distribution-development
opportunities in the U.S. and Canada.
SNC unveiled plans a year ago to target growth in key
engineering and construction markets, with a focus on the resources
sector.
"The sale of AltaLink will help us build value for our company
by providing opportunities to advance our E&C growth strategy.
The use of capital will be determined based on the best long-term
interests of SNC-Lavalin," said Robert Card, SNC's president and
chief executive.
Write to Judy McKinnon at judy.mckinnon@wsj.com
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