SNC-Lavalin to sell Alberta transmission giant

SNC-Lavalin has entered into a binding agreement to sell 100% of its interest in AltaLink. The sale is to Berkshire Hathaway Energy of Des Moines, Iowa, and will bring SNC-Lavalin approximately $3.2 billion.

Founded 12 years ago, AltaLink is Alberta’s largest regulated electricity transmission company and maintains and operates approximately 12,000 kilometres of transmission lines and 280 substations in the province. It also owns more than half of Alberta’s transmission grid and delivers electricity to approximately 85 per cent of the province’s population.

In a press release, SNC-Lavalin said that the sale represents “another significant step” in the execution of the company’s strategic plan. The company says it is “actively managing its portfolio of infrastructure concession investments to unlock and create value that supports its future growth as a tier-1 services provider in key engineering and construction markets.” It is targeting its resources, oil and gas, mining and metallurgy, and environment and water, infrastructure and power E&C businesses, while focusing geographically on North America, South America and the Middle East.

Robert G. Card, president and chief executive officer, of SNC-Lavalin Group, thanked the employees of AltaLink, while Gerry Grigoropoulos, acting executive vice-president of Infrastructure Concession Investments in SNC-Lavalin said: “Our excellent relationship over the past decade with AltaLink allowed us to develop an outstanding asset, while growing our engineering and construction team and maintaining strong expertise in the transmission and distribution of energy — a sector in which we aspire to be a global leader.” Completion of the sale is subject to regulatory approvals, including approval by the Alberta Utilities Commission and under the Competition Act.

Berkshire Hathaway Energy had $70 billion of assets at the end of 2013. Its subsidiary MidAmerican Transmission has agreed with SNC-Lavalin to develop opportunities with independent operators and organizations.