09:08 AM EST, 11/14/2024 (MT Newswires) -- The Competition Bureau said Thursday it had entered into a consent agreement with TransAlta ( TAC ) to address competition concerns with its acquisition of Heartland Generation.

A statement noted that a Bureau review had concluded that the proposed transaction would likely result in a substantial lessening of competition in the supply of wholesale electricity in Alberta. To resolve the Bureau's concerns, the statement said, TransAlta ( TAC ) has agreed to sell Heartland Generation's Poplar Hill and Rainbow Lake 4 & 5 electricity generating businesses. The sale will be made to one or more independent purchasers to be approved by the Commissioner of Competition.

"The Bureau is satisfied that the sale will resolve the competition concerns arising from the proposed transaction," the statement added.

TransAlta ( TAC ) earlier Thursday had said it will divest Heartland's Poplar Hill and Rainbow Lake assets and will now acquire the company for a reduced price of $542 million.

The divesture will see Heartland's original purchase price cut by $80 million, as its parent, Energy Capital Partners, will receive the proceeds from the sale of the two assets, representing 97 MW.

Heartland owns and operates generation assets consisting of 507 MW of cogeneration, 387 MW of contracted and merchant peaking generation, 950 MW of natural gas-fired thermal generation, transmission capacity and a development pipeline that includes the 400 MW Battle River Carbon Hub.

"We are pleased to be able to move forward with the Heartland acquisition in the coming weeks, and to incorporate Heartland's complementary assets within our Alberta portfolio. Consistent with our original investment thesis, the Alberta market will increasingly require low-cost, flexible and fast-responding generation to support grid reliability over the coming years," said John Kousinioris, President and Chief Executive Officer of TransAlta.The Competition Bureau has entered into a consent agreement with TransAlta ( TAC ) to address competition concerns with its acquisition of Heartland Generation.

A Bureau review concluded that the proposed transaction would likely result in a substantial lessening of competition in the supply of wholesale electricity in Alberta.

To resolve the Bureau's concerns, TransAlta ( TAC ) has agreed to sell Heartland Generation's Poplar Hill and Rainbow Lake 4 & 5 electricity generating businesses. The sale will be made to one or more independent purchasers to be approved by the Commissioner of Competition.

The Bureau is satisfied that the sale will resolve the competition concerns arising from the proposed transaction.