Emera bids for national powerhouse with $35-billion Canadian Utilities, ATCO merger
Emera Inc. has announced a $14.3-billion all-stock merger with Canadian Utilities and ATCO to create a major North American utility powerhouse. The combined entity aims to leverage increased scale to support large-scale infrastructure projects like data centers and electrical grids.
Why it matters
This consolidation reflects a broader trend in the utility sector to pool resources for massive energy infrastructure demands driven by the digital economy.
Emera CEO Scott Balfour says the company wants to build networks to support data centres, pipelines and electrical grids through its merger with Canadian Utilities and parent company ATCO. Arlyn McAdorey/The Globe and Mail
Halifax-based Emera Inc. EMA-T is bidding to build a national champion in the utility sector by merging with Calgary natural gas and electricity infrastructure owner Canadian Utilities Ltd. CU-T and parent ATCO Ltd. ACO-X-T in a $14.3-billion union.
On Tuesday, Emera announced a friendly all-stock offer for Alberta peers controlled by the Southern family in a deal that would create one of the 20 largest utilities in North America. The combined companies would have an enterprise value – their debt plus equity – of $72-billion, which the three companies said would rank as one of the largest mergers in Canadian history.
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