Emera Inc. agreed to acquire Canadian Utilities Ltd. in an all-stock deal valued at about C$14.3 billion ($10 billion), creating a sprawling power and natural gas company with customers from Florida to Alberta. The combined company will have an enterprise value of about C$72 billion and six million customers, according to a statement Tuesday. It will be the largest single merger between two Canadian corporations, forming a top 20 North American utility, the companies said.
The deal comes as demand for electricity is set to surge, driven by increasingly electrified homes and businesses, and especially by the voracious needs of artificial intelligence. The companies said the combined venture would have the scale to pursue major expansion projects while positioning itself to serve large-load customers. Emera currently operates four natural gas and electric utilities, serving more than 2 million customers across Canada, the US and the Caribbean.
Roughly 70% of its earnings stem from operations in Florida, where Emera maintains a US headquarters. Canadian Utilities operates electric and gas transmission and distribution systems to more 3 million customers throughout North America. Its parent company, ATCO Ltd., has operated Puerto Rico’s electric grid as LUMA, formed with Quanta Services. ATCO will spin off its other businesses from Canadian Utilities into a separate publicly-traded company that will focus on industrial services, including housing, defense and investments in ports and retail energy.
The companies plan to undertake a C$32 billion capital investment initiative through 2030. By combining, the companies say they will be better positioned to tackle large-scale electrification projects, major gas and transmission developments and other big infrastructure initiatives. The deal is expected to close in the third or fourth quarter of 2027. Lazard is Emera’s lead financial advisor, along with Scotiabank, and Osler, Hoskin & Harcourt LLP is acting as legal advisor. Gordon Dyal & Co. is lead financial advisor to ATCO and Canadian Utilities, and Blake, Cassels & Graydon LLP is legal advisor.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing