TransAlta completes controversial acquisition of Heartland Generation and Alberta Power

In Canada, on December 4, 2024, TransAlta Corporation announced the completion of its acquisition of Heartland Generation Ltd. and Alberta Power (2000) Ltd., collectively known as Heartland. This significant acquisition involved a total purchase price of $542 million, which was adjusted downward by approximately $95 million to account for the economic benefits the Heartland business accrued since October 31, 2023. Consequently, the net cash payment made by TransAlta before working capital adjustments amounted to $215 million. To comply with the requirements set by the federal Competition Bureau regarding the acquisition, TransAlta entered a consent agreement with the Commissioner of Competition. As part of this agreement, TransAlta will divest specific assets belonging to Heartland — the Poplar Hill and Rainbow Lake assets — following the acquisition's finalization. Energy Capital Partners, from whom TransAlta purchased Heartland, is set to receive the proceeds from this divestiture. The process for selling these assets is expected to commence shortly. TransAlta Corporation has targeted a longstanding relationship with the communities where it operates, underlining a commitment to maintain sustainable energy production while delivering reliable power solutions. For over 113 years, the company has focused on generating affordable and energy-efficient power to medium and large industries, municipalities, and utility customers across Canada, the United States, and Australia. The acquisition is anticipated to enhance TransAlta's operational capabilities within the power generation sector, aligning with their corporate goals that reflect sustainable practices, including commitments to reduce greenhouse gas emissions. TransAlta's achievements include a significant 66 percent reduction in greenhouse gas emissions, equivalent to 21.3 million tonnes of CO2e, since 2015. They have also successfully improved their Environmental, Social, and Governance (ESG) ratings, notably receiving an upgraded MSCI ESG rating of AA. With the current acquisition, TransAlta continues to reinforce its position in the electricity generation market while adhering to the United Nations Sustainable Development Goals and the Future-Fit Business Benchmark for businesses aiming for sustainability. The company emphasizes transparency in its operations and reports on climate management guided by international financial reporting standards and recommended disclosures.