(Excerpt)

A $1.36-billion purchase of two electricity producers has catapulted St John’s company into the big leagues

Operating primarily in the low-key electricity sector has kept Fortis Inc. a relative
unknown – until last Monday, when it announced a leap forward with the biggest acquisition in its 16-year history. The $1.36-billion purchase of two utility businesses in Alberta and British Columbia from U.S.-based Aquila Inc. has thrust the hulking Fortis, which also owns real-estate properties, onto the radars of major-league investors. One analyst said some were surprised by the sheer size of the deal.

Fortis said the acquisition, expected to close in the first half of 2004, will increase its assets by about 75% to surpass $3.6-billion, and more than double its customer base to 900,000, while offering substantial diversification. Once the deal is completed, Fortis will operate in five provinces with no single division accounting for more than 25% of the company’s total earnings, assets or cash flow. This will “mitigate the effect of any single adverse event,” the company said.