TransAlta to buy TransAlta Renewables for $1 billion

(Reuters) - Electric utility TransAlta Corp will buy shares of TransAlta Renewables Inc it does not already own for C$1.38 billion ($1.04 billion) in a cash-and-stock deal, the company said on Tuesday.

Electric utilities are streamlining their operations to shift away from fossil fuels toward cleaner energy sources, including solar and wind, to meet climate goals.

The combined company will have unified and direct ownership interests in a diversified portfolio of wind, hydro, solar, storage and natural gas generation assets.

The deal is expected to be completed early in the fourth quarter of 2023 and the combined company will operate as TransAlta and remain listed on the Toronto Stock Exchange and the New York Stock Exchange.

($1 = 1.3276 Canadian dollars)