Emera to acquire Canadian Utilities in $10 billion all-stock deal
EMA•Emera said it would acquire Canadian Utilities in an all-stock deal valued at C$14.3 billion ($10.02 billion). Emera shareholders are expected to own about 60% of the combined company, which will have an enterprise value of about C$72 billion.
1. Deal terms
Canadian Utilities Class A shareholders, excluding ATCO, will receive 0.755 Emera shares per share, while Class B shareholders will receive 0.819 Emera shares. The deal values Class A shares at about C$51.57, a premium of roughly 0.7% to Monday’s closing price.
2. Investment plans
Emera said the deal would strengthen its financial position and support a planned C$32 billion capital program through 2030, with expected annual rate-base growth of 7% to 8%. The combined company is expected to close in the third or fourth quarter of 2027 and will operate as Emera, with its public company headquarters in Halifax.
3. ATCO spin-off
ATCO, which holds nearly 37% of Canadian Utilities’ outstanding non-voting shares and all its outstanding voting shares, will spin off as a publicly traded industrial services company called New ATCO. ATCO Chair and CEO Nancy Southern will lead the new entity, which will focus on housing, defence and investments including ports and retail energy.
