Durham Region, Ontario: The CEO's of three large Ontario utilities who have been evaluating the benefits of a merger, namely Veridian Corporation, Oshawa Power and Utilities Corporation and Whitby Hydro Energy Corporation, announced March 1 that Oshawa PUC will be amicably withdrawing from further merger discussions. Both Veridian and Whitby Hydro have confirmed they are fully committed to moving forward with due diligence and review of a possible merger.
In late 2015, the respective leadership teams of Veridian, Oshawa PUC and Whitby Hydro began discussions to identify the potential benefits of a merger that would create value for all shareholders and customers, as well as position the combined entity for the future. Since that time, all parties have participated in rigorous business case analysis and valuations. On March 1, the parties jointly announced that Oshawa PUC had amicably withdrawn from future merger discussions and only Veridian and Whitby Hydro would proceed to the next stages of merger review.
"This is not uncommon in merger proceedings. Merger evaluations are designed to ensure all parties can deliver benefits to their respective shareholders and customers. Oshawa PUC has chosen to withdraw as they believe benefits to their shareholders and customers are not sufficient," said Michael Angemeer, President and CEO of Veridian Corporation.
In 2012, the Provincial government conducted a review of Ontario's distribution facilities and encouraged local utilities to drive efficiencies and find benefits to customers. Consolidation, or merging with other local utilities, was one pathway to achieve this if the right set of variables existed for all parties involved.