Gaz Metro wins Vermont utility after Fortis bows out

Gaz Metro, which owns Vermont's second-largest utility Green Mountain Power, struck a deal to buy Central Vermont Public Service Inc for $472 million US, and Fortis Inc. pulled its rival bid.

Quebec-based Gaz Metro's promise of savings worth $144 million over 10 years for CVPS customers was enough to wrest Vermont's largest utility from Fortis.

Gaz Metro's offer, made on June 23, also included plans to set up a trust for low-income customers and its 25 year track record in Vermont was expected to tip the scales in its favour.

The board of CVPS ended its agreement with Fortis after deeming Gaz Metro's offer to be superior, it said in a statement.

Fortis waived the right to negotiate with CVPS in exchange for a $17.5 million termination fee and $2.0 million in expenses, it said in a separate statement.