Home / Business and Economy / Emera Buys Canadian Utilities in $10B All-Stock Deal
Emera Buys Canadian Utilities in $10B All-Stock Deal
6 Oct
Summary
- Emera acquires Canadian Utilities in an all-stock deal valued at C$14.3 billion.
- The merger creates one of Canada's largest utilities amidst rising electricity demand.
- ATCO, a major stakeholder, will spin off into a new industrial services company.
Emera has agreed to acquire Canadian Utilities in an all-stock transaction valued at C$14.3 billion. This significant merger is poised to create one of Canada's largest utility companies, responding to booming electricity demand and the need for industry consolidation. Shareholders of Emera are anticipated to own approximately 60% of the new entity, with Canadian Utilities' shareholders holding the remaining 40%.
The strategic acquisition aims to enhance Emera's financial standing and support a substantial C$32 billion capital program through 2030. The combined company will continue to operate under the Emera name, maintaining its headquarters in Halifax. Scott Balfour, current president and CEO of Emera, will lead the merged entity.
A notable outcome of this deal is the spin-off of ATCO, a significant stakeholder in Canadian Utilities. ATCO will be restructured into a new, publicly traded industrial services company focused on housing, defense, and investments. Nancy Southern will lead this new ATCO entity.
