KANSAS CITY, Mo.—Aquila Inc., which operates electric and natural gas utilities in Missouri, Colorado, Iowa, Nebraska and Kansas, said Tuesday that federal authorities have cleared its proposed acquisition by utilities Great Plains Energy Inc. and Black Hills Corp.
Great Plains, based in Kansas City, and Rapid City, S.D.-based Black Hills plan to acquire Aquila’s assets in separate transactions for a combined $2.6 billion. The cash and stock deal valued Aquila shares at $4.54.
The company said the Federal Trade Commission on Monday granted the companies early termination of the waiting period under the Hart-Scott-Rodino Antitrust Act for both acquisitions. Exiting the waiting period without comments from the commission or the Justice Department was required to complete the sales.
State regulators still must approve the deals.
Aquila and Great Plains Energy said they have scheduled special meetings for shareholders to vote on the proposed transaction. Aquila will hold its meeting on Oct. 9 in Blue Springs while Great Plains Energy has scheduled its meeting for Oct. 10 in Kansas City.
If approved, the deal is expected to close in the first quarter of 2008.
Aquila shares remained unchanged at $3.82 in trading Tuesday.
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