Taking the first step to move across the Canadian border, NSPower Holdings Inc. announced plans to merge with its U.S.neighbor, Maine’s Bangor Hydro-Electric Co.

The Halifax, NS-based company, which owns 100% of Nova Scotia’selectric utility, agreed to pay $26.50 a share, or $206 million incash for the Maine company — about 77% more than the price atBangor Hydro’s close at the time of the announcement.

Most important, the Maine connection will give the Canadiancompany a base to launch more initiatives into the region,something the company is expected to do.

“Nova Scotia and Maine are good neighbors, with similargeography and service environments,” said NS Power’s CEO DavidMann.

Bangor Hydro’s business is focused only on electricitytransmission and distribution, and it will continue to be regulatedby the Maine Public Utilities Commission.

Mann said Bangor Hydro’s name would not change, and he did notexpect any personnel changes to be made. The merger, which wouldmake Bangor Hydro a subsidiary of NS Power, is expected to becompleted within a year. The Maine electric utility serves about110,000 customers and is a member of the New England Power Pool.

The merger will give NS Power its first stake on U.S. soil. With$2.9 billion in assets, it had $532 million in sales last year, andits utility has 440,000 customers. NS Power also has a 12.5%interest in the Maritimes & Northeast Pipeline.

Carolyn Davis, Houston

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