Memorandum of Understanding
The joint Memorandum of Understanding (MOU) is a non-binding agreement for the shareholders to undertake their own due diligence, including legal and financial discoveries. It includes a general timeline for the due diligence period and next steps, should the potential merger be considered by all parties to be a “go”.
The MOU helps guide the decision-making process and whether the prospect of merging makes sense including:
- Continued ownership by the municipalities following best corporate governance practices;
- A new entity positioned to preserve a local focus and highly responsive to customer priorities;
- Continued contributions to the economic development, social and environmental needs of the municipalities;
- Maintaining operations centres in both Brantford and Cambridge;
- Customer service and reliability levels that deliver stable, competitive distribution rates;
- Approval is required from the Ontario Energy Board to confirm that the potential merger is in the public interest;
- Increased efficiencies, innovation and sharing of capital investments;
- Maximizing shareholder value now, and in the future;
- Continued focus on employee and public safety with an inclusive and respectful workplace;
- Increased opportunities for employees. Existing employees be treated fairly.
Next Steps and Timeline
On August 31, 2021, the three municipal shareholders approved the merger. The Ontario Energy Board (OEB) will review the application and decide on whether to proceed with the merger or not proceed. The OEB decision is expected in 2022.
See more about Next Steps and Timeline for the Merger Exploration.