For the past few decades, the Ontario electricity distribution market has seen significant consolidation – with minimal changes to the process. Key aspects like rationale, deal process, and documentation have remained relatively unchanged; however, in the past ten years, we have noticed a shift in the following: Priorities – There is equal emphasis on innovation, customer impact and future proofing the entire organization, whereas in the past, the priority was solely financial gain. Regulatory impact – As a result of the changing OEB regulations and the downward pressure on rates and return on equity, there has been an increased requirement for additional financial analysis to ensure no harm to the ratepayers as well as an increased rationale towards diversification. Diversification – Many merger partners are looking for non-regulated capabilities, and/or increased financing capacity to be used for non-regulated opportunities/innovation. This has shifted a significant portion of the business ...

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