Emera and Canadian Utilities agree to Canada's biggest-ever merger
Emera, based in Halifax, agreed Tuesday to merge with Calgary's Canadian Utilities in a stock deal worth about C$14.3 billion. The new company would serve about 6 million customers. The firms say it is the biggest merger ever between two Canadian companies.
Two big Canadian power companies plan to join forces. Emera, based in Halifax, Nova Scotia, agreed Tuesday to merge with Canadian Utilities, based in Calgary, Alberta. Emera will buy all of Canadian Utilities' shares in an all-stock deal worth about C$14.3 billion, the companies said.
Counting debt, the combined company would be worth about C$72 billion. It would serve around 6 million customers in Canada, the United States and other markets. Based on Canadian Utilities' value, the companies said it would be the largest merger ever between two Canadian companies.
The new company will keep the Emera name and its headquarters in Halifax. Emera CEO Scott Balfour will lead it. Emera shareholders would own about 60%, and Canadian Utilities and ATCO shareholders about 40%.
ATCO, Canadian Utilities' parent company, is part of the deal too. Its housing, defense and ports businesses will be spun off into a new public company called New ATCO. ATCO CEO Nancy Southern will run it.
Canadian Utilities Class A shareholders other than ATCO get 0.755 of an Emera share for each share. At Monday's closing prices, that was a premium of only about 0.7%, Mugglehead calculated.
Why merge? About 80% of the combined earnings would come from Florida and Alberta, two fast-growing markets. The companies plan C$32 billion in spending through 2030 to meet rising power demand.
Investors were cool at first. Emera stock fell 2.91% to C$66.31 in Toronto on Tuesday, AD HOC NEWS reported.
"This merger creates a Canadian utility and energy infrastructure powerhouse," Balfour said.
The deal needs many approvals. They include shareholder votes, an Alberta court, Alberta's utility regulator, U.S. energy regulators and a U.S. foreign-investment review. Shareholder meetings are expected in early 2027. The companies expect the deal to close in the third or fourth quarter of 2027.
What we know: The merged company would serve about 6 million customers.
What we don't: Whether regulators in Canada and the U.S. will set conditions.
Where outlets agree Mugglehead and AD HOC NEWS both report a combined enterprise value of about C$72 billion, with Emera holders owning about 60% of the new company.
Where they differ The companies pitch the deal as a growth story, but Emera shares fell almost 3% on the news and the premium for Canadian Utilities holders was under 1%.