Canada's Emera Inc said it agreed to buy Irving Oil's interests in Bayside Power LP, located in New Brunswick, to complement its operations in the region.
The 260 megawatt gas-fired combined cycle power plant is a key supplier of energy in New Brunswick and also supplies energy to the U.S. Northeast market for parts of the year, it said.
The transaction will be accretive to Emera within the first year, the energy and services company said.
Shares of Emera, which owns a 145 kilometer gas pipeline in New Brunswick, closed at C$21.48 Thursday on the Toronto Stock Exchange.
(Reporting by Ashutosh Joshi in Bangalore; Editing by Aradhana Aravindan)