ATCO announced that Canadian Utilities Limited, an ATCO company, has reached an agreement to acquire the company Electricidad del Golfo (EGO), which has a hydroelectric generation plant of 35 Megawatts (MW), in the State of Veracruz, Mexico.
This acquisition continues to consolidate the presence of ATCO in the Mexican energy sector and is an important step as the company continues to develop a diversified and flexible portfolio of electricity assets, with the objective of satisfying the changing needs of its customers.
“The energy sector is changing and we are playing a key role in making this transition possible for our customers around the world,” said Wayne Stensby, General Director of Electricity at ATCO.
“Our current presence in Mexico gives us invaluable knowledge of the local operating environment, the regulatory framework, and relationships with communities, which are crucial to continuing expanding our presence in this diverse and dynamic market.”
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The hydroelectric generation plant has been in commercial operation since 2014 under a long-term contract. ATCO will also assume the existing management of the EGO administrative team, whose local experience will be important as the company continues to grow in the region.
The total purchase price of the proposed transaction is approximately CAD $ 114 million. The proposed transaction is subject to customary conditions and is expected to end in the first quarter of 2018.
The acquisition marks the latest event in the growth of ATCO in Mexico, where the company continues to expand its integrated offer of energy and infrastructure solutions. In February 2017, ATCO announced its partnership with RANMAN Energy to develop an innovative and highly scalable on-site power generation solution at the World Trade Center Industrial Park in San Luis Potosí.