Canada · Halifax
Emera to Buy Canadian Utilities in $72-Billion Merger
In brief
Emera Inc. announced on Tuesday, October 6, that it will combine with Calgary-based Canadian Utilities in an all-stock deal. The Canadian Press reported the merged company would be worth about $72 billion and rank among the largest utilities in North America.
Emera, the Halifax company that owns Nova Scotia Power and also runs utilities in the United States and the Caribbean, will acquire both Canadian Utilities and Atco Ltd., which holds a controlling stake in Canadian Utilities. Canadian Utilities operates in Canada’s North as well as in Mexico, Australia and Puerto Rico.
Under the plan, Atco’s industrial services business would be spun off into a new public company owned by Atco’s current shareholders and led by Atco chief executive Nancy Southern. The combined utility would keep the Emera name and its public head office in Halifax, while Canadian Utilities’ corporate and operating offices stay in Calgary and Edmonton.
According to the Canadian Press, current Emera shareholders are expected to own about 60 per cent of the merged utility, with former Atco and Canadian Utilities shareholders holding about 40 per cent. The companies pointed to rising power demand from electrification as a reason for the deal. Shareholder and regulatory approvals are still needed.
Why it matters
Utility mergers can affect power and gas customers, investment plans and pensions that hold utility shares. Regulators will review the deal, and customers’ rates are set separately by provincial and state boards.
Sources
Every ViralScopeHub news item is an original summary written in our own words. We link to the original reporting so you can read the full story from the publisher.