Ontario Power to buy three power plants from TC Energy for $2.18 bln

Ontario Power Generation Inc [ONPWG.UL] said on Tuesday its unit had entered a deal with affiliates of pipeline company TC Energy Corp to buy three natural gas-fired plants in Ontario for about C$2.87 billion ($2.18 billion).

Adds details on the deal

July 30 (Reuters) - Ontario Power Generation Inc ONPWG.UL said on Tuesday its unit had entered a deal with affiliates of pipeline company TC Energy Corp TRP.TO to buy three natural gas-fired plants in Ontario for about C$2.87 billion ($2.18 billion).

TC Energy, formerly TransCanada Corp, will sell the 683-megawatt Halton Hills power plant, the 900-megawatt Napanee generating station that is nearing completion and TC Energy's 50% stake in the 550-megawatt Portlands Energy Centre.

Ontario Power has been building up its power assets through deals. In June, Ontario's largest electricity generator bought U.S.-based hydropower company Cube Hydro for $1.12 billion and separately entered into a deal to buy the remaining 50% stake in the 560-megawatt Brighton Beach natural gas-fired power station from affiliates of Canadian Utilities Ltd's CU.TO.

The latest deal, which is expected to close late-2019, is subject to regulatory approvals and Napanee reaching commercial operations, TC Energy said.

RBC Capital Markets is the financial adviser to Ontario Power.

Following the sale of the facilities, TC Energy's portfolio will include investments in six low-emission natural gas-fired power plants and the Bruce Power nuclear facility, where the company is undertaking a life-extension program and investing about C$2.2 billion by 2023.

TC Energy is set to report second-quarter results on Aug. 1.

($1 = 1.3150 Canadian dollars)

(Reporting by Shanti S Nair in Bengaluru; Editing by Sriraj Kalluvila)

((ShantiS.Nair@thomsonreuters.com; +1 646 223 8780 Ext: 7208; Reuters Messaging: shantis.nair.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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