2 Southern Ontario Utilities to Merge
January 2, 2017
St. Thomas Energy and Chatham-Kent based Entegrus Powerlines have announced plans to merge, creating a new, larger entity. Once approved, the merger is expected to be finalized in January 2018.
Entegrus submitted a proposal for the merger on November 15, 2016. The proposal had unanimous approval of the St. Thomas City Council and support by both the St. Thomas Energy and Entegrus Boards.
The new utility will maintain offices in St. Thomas, Chatham and Strathroy, and become the 11th largest utility in Ontario. Both companies state that customers will reap the benefits of a larger utility that is locally owned and operated, with strong customer service and fast operational response times.
St. Thomas Mayor, Heather Jackson, is excited by the merger, which is one of many Hydro consolidation projects currently happening in Ontario. “I believe this will be a very successful venture. Both Entegrus Powerlines and St. Thomas Energy are forward thinking, progressive companies with a focus on innovation. I look forward to seeing the positive impact on our community.” says Jackson.
“We are pleased to see transactions that will benefit our citizens, and this is truly one of them,” says Chatham-Kent Mayor, Randy Hope. “Safe, reliable power is imperative for our community, and the union of these two companies will strengthen their ability to quickly respond to our local needs.”
Both companies are awaiting final shareholder approval and will enter a due diligence phase with a goal of receiving final Ontario Energy Board approval in 2017. Part of the due diligence phase will include public consultation.
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