(NEW YORK, AP) — Canadian utility Fortis is buying electric transmission company ITC Holdings in a cash-and-stock deal valued at about $6.9 billion as it looks to further diversify its business.

ITC owns and runs high-voltage transmission facilities in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma.

ITC Holdings Corp. shareholders will receive $22.57 per share and 0.7520 Fortis shares for each share they own. ITC stockholders will own about 27 percent of Fortis’ common stock.

Fortis Inc. said Tuesday that it will assume approximately $4.4 billion of ITC’s debt.

Once the transaction closes, ITC will become a Fortis subsidiary. Fortis said that it plan on keeping all of ITC’s employees and maintaining its headquarters in Novi, Michigan.

Fortis said that it will apply for a listing on the New York Stock Exchange and will continue to list on the Toronto Stock Exchange.

Both companies’ boards have approved the deal, which is targeted to close later this year. It still needs approval from shareholders of both companies. The deal also requires state approvals as well as certain regulatory and federal approvals, including those of the Federal Energy Regulatory Commission, the Committee on Foreign Investment in the United States, and the United States Federal Trade Commission/Department of Justice.

ITC Holdings Corp. shares fell 35 cents to $39.03 in morning trading Tuesday.