TransAlta Corp. has reached an agreement with the Competition Bureau to address the regulator’s concerns about its plan to acquire Heartland Generation Ltd. and its power generation business in Alberta and B.C.

Under the agreement, TransAlta agreed to sell Heartland’s Poplar Hill and Rainbow Lake power generation businesses in Alberta.

The sale will be made to one or more independent buyers for approval by the Competition Commissioner in order to resolve competition concerns arising from the proposed transaction.

As a result of the change, TransAlta and Heartland’s seller, Energy Capital Partners, agreed to an $80 million reduction in the purchase price to reflect the necessary divestitures.

The deal is currently valued at $542 million, including the assumption of $232 million in debt. The revised transaction price will be reduced by approximately $80 million upon completion of the transaction to reflect the economic benefit of the Heartland business resulting from October 31, 2023, which will be paid to TransAlta, in accordance with the original terms of the agreement.

Energy Capital Partners will be entitled to receive proceeds from the sale of Poplar Hill and Rainbow Lake, net of certain adjustments.

This report by The Canadian Press was first published Nov. 14, 2024.