Federal regulators signed off recently on the merger of ALLETE, Inc., the parent firm of a wind farm operator in Oklahoma, with Canada Pension Plan Investment Board and Global Infrastructure Partners.
ALLETE, based in Duluth, Minnesota, received approval from the Federal Energy Regulatory Commission.
“FERC’s approval of ALLETE’s proposed transaction with CPP Investments and GIP marks an important milestone and brings us one step closer to realizing the benefits of this transaction for our customers, our communities, our co-workers, and our shareholders,” said ALLETE Chair, President, and CEO Bethany Owen.
“We are pleased with this decision and look forward to the tremendous opportunity this transaction creates for long-term energy and infrastructure investment while maintaining local jobs, management, and regulatory oversight.”
Owen added, “We will continue diligently working to secure the remaining regulatory approvals for this transaction and value the input of all stakeholders in this process.”
ALLETE’s subsidiary, ALLETE Clean Energy, owns and operates two wind farms in Oklahoma. One is the Caddo wind farm near Anadarko and the other is Diamond Spring near Sulphur.
As previously announced, under the terms of the merger agreement, CPP Investments and GIP will acquire all outstanding common shares of ALLETE for $67 per share in cash, or $6.2 billion, without interest, including the assumption of debt. Following close, ALLETE will remain locally managed and operated. Its utilities, Minnesota Power and SWL&P, will continue to be regulated by the Minnesota Public Utilities Commission, the Public Service Commission of Wisconsin and FERC. The acquisition is not expected to impact retail or municipal rates for utility customers. ALLETE expects to complete the transaction in mid-2025, which remains subject to certain regulatory approvals and other customary closing conditions.