Emera Inc. and Canadian Utilities Ltd. are teaming up in an all-stock merger valued at $72 billion, creating a formidable energy entity that would stand as one of the largest utilities in North America. This collaboration brings together Emera, headquartered in Halifax but with operations in the U.S. and the Caribbean, and Canadian Utilities, based in Calgary and active in various regions including Canada’s North, Mexico, Australia, and Puerto Rico.
Scott Balfour, Emera’s CEO, highlighted that the combined company is strategically positioned to address the rising energy demands driven by electrification trends and significant infrastructure development, thereby supporting Canada’s growth objectives. As per the agreement, Emera will acquire Canadian Utilities and Atco Ltd., which holds a controlling interest in Canadian Utilities, while Atco’s industrial services division will become a new publicly traded company under the leadership of Atco CEO Nancy Southern.
Southern emphasized that the merged Emera/Canadian Utilities entity will possess the necessary scale, capabilities, and financial resources to invest in vital energy and infrastructure projects to cater to escalating demand. Meanwhile, the newly formed Atco will focus on advancing growth in housing, defense, and industrial services sectors.
The integrated companies are poised to capitalize on opportunities arising from economic expansion, infrastructure enhancement, and the heightened emphasis on security and resilience, thereby generating enduring value for shareholders and the Canadian populace alike. The rebranded utility company, operating under the Emera name, will remain headquartered in Halifax while retaining Canadian Utilities’ corporate and operational bases in Calgary and Edmonton.
It is anticipated that existing Emera shareholders will own around 60% of the combined utility, with former Atco and Canadian Utilities shareholders holding approximately 40%.
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