Emera Inc. and Canadian Utilities Ltd. are set to merge in an all-stock deal, creating a formidable energy company valued at $72 billion, positioning it as one of the largest utilities in North America. This merger combines the operations of the Halifax-based Emera, which has a presence in the United States and the Caribbean, with Calgary-based Canadian Utilities, operating in Canada’s North, Mexico, Australia, and Puerto Rico.
Scott Balfour, Emera’s CEO, highlighted that the merged entity will be well-equipped to address the increasing energy demands driven by electrification trends and crucial infrastructure development, supporting Canada’s growth objectives. As part of the agreement, Emera will acquire Canadian Utilities and Atco Ltd., the majority shareholder of Canadian Utilities. At the same time, Atco’s industrial services division will become a separate publicly traded company, led by Atco’s CEO Nancy Southern.
Southern emphasized that the combined Emera/Canadian Utilities company will possess the necessary scale, resources, and capital to invest in essential energy and infrastructure projects to meet rising demands. The newly formed utility company, operating under the Emera brand, will be headquartered in Halifax, while maintaining Canadian Utilities’ corporate and operational bases in Calgary and Edmonton.
The ownership structure of the merged utility is expected to see existing Emera shareholders holding around 60% of the combined company, with former Atco and Canadian Utilities shareholders owning the remaining 40%. The consolidation aims to leverage opportunities arising from economic growth, infrastructure expansion, and the growing emphasis on security and resilience, creating lasting value for shareholders and the Canadian community.