Newfoundland-based Fortis Inc. agreed to buy New York utility CH Energy Group Inc. for about $1 billion in cash.

According to The Wall Street Journal, Fortis said it will offer CH Energy shareholders $65 a share and assume about $500 million in debt. The deal is expected to close by next year, increasing Fortis’ assets by 16 percent.

CH Energy's main business is Central Hudson Gas & Electric Corp., a transmission-and-distribution utility serving about 300,000 electric and 75,000 natural-gas customers in New York state.

Fortis said it expects to use its multiyear credit facility to finance the purchase in the short term, the article said.

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