Emera to acquire Calgary-based Canadian Utilities in $14.3 billion all-stock deal
The merger creates one of Canada's largest utilities valued at approximately $72 billion, with ATCO spinning off into a separate industrial services company.
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Emera, a Halifax-based utility company, is acquiring Calgary-based Canadian Utilities in an all-stock deal valued at $14.3 billion, creating a merged company worth approximately $72 billion and positioning it as one of Canada's largest utilities.
Emera shareholders will own roughly 60 per cent of the combined company, while Canadian Utilities shareholders will own approximately 40 per cent. The deal values Canadian Utilities Class A shares at approximately $51.57 each, representing a 0.7 per cent premium to the last closing price on Monday.
The merger is expected to close in the third or fourth quarter of 2027. The combined company will operate as Emera, with headquarters in Halifax, though it will maintain Canadian Utilities' corporate and operational centres in Calgary and Edmonton, plus operations in Perth, Australia.
ATCO, which controls all voting shares and holds nearly 37 per cent of non-voting shares of Canadian Utilities, will spin off into a publicly traded industrial services company called New ATCO. ATCO chair and CEO Nancy Southern will lead New ATCO, which will focus on housing, defence, and investments including ports and retail energy. Scott Balfour, Emera president and CEO, will lead the combined utility.
Emera has planned a $32 billion capital program through 2030, with the merged company expected to achieve annual rate-base growth of seven to eight per cent. "As demand rises from electrification trends and major infrastructure development, the combined company will be better positioned to help meet growing energy needs," Balfour said in a statement.
Canadian Utilities operates across Canada's North, Mexico, Australia and Puerto Rico, while Emera owns or has stakes in about a dozen energy generation, transmission and distribution operations across Atlantic Canada, the United States and the Caribbean, including parent company status over Nova Scotia Power.
What regulatory approvals are still required before the deal can close
How the merger may affect customer rates or service in Alberta
What employment impacts the spinoff and merger will have across Calgary and Edmonton operations
We'll update this story as answers emerge.
The facts
What is the value of the Emera and Canadian Utilities deal?
The all-stock acquisition is valued at $14.3 billion, creating a merged company worth approximately $72 billion.
When is the merger expected to close?
The merger is expected to close in the third or fourth quarter of 2027.
What will happen to ATCO?
ATCO will spin off into a publicly traded industrial services company called New ATCO, which will focus on housing, defence, and investments including ports and retail energy.
Who will lead the combined utility company?
Scott Balfour, Emera's president and CEO, will lead the combined company, which will operate as Emera with headquarters in Halifax.
