By OGJ editors
HOUSTON, Feb. 27 -- Fortis Inc., an investor in electric distribution utilities, agreed to buy Terasen Inc. from Kinder Morgan Inc. for $3.7 billion (Can.).
Terasen's principal assets are Terasen Gas Inc. and Terasen Gas (Vancouver Island) Inc. The regulated distribution business delivers gas and propane to British Columbia.
The transaction, subject to certain conditions and regulatory approvals, is expected to close in midyear. Fortis is based in St. John's, Newf.
The sale does not include Kinder Morgan Canada (formerly Terasen Pipelines). Kinder Morgan acquired the pipeline assets with the rest of Terasen in December 2005.
Upon completion of the Terasen Gas sale, KMI will exit the retail utility business.
