ATCO, Canadian Utilities, and Emera announce $72-billion utility merger

CALGARY — ATCO and Canadian Utilities will merge with Halifax-based Emera in a merger of equals to form a top-20 North American utility capable of meeting the growing demand from data centres and other major infrastructure projects.The transaction was announced on Tuesday, with approximately $72 billion in combined enterprise value, $45 billion in rate base and six million customers.“This merger creates a Canadian utility and energy infrastructure powerhouse with the scale, financial capacity and expertise to invest in the systems our customers will rely on for decades,” said Scott Balfour, president and CEO of Emera.“As demand rises from electrification trends and major infrastructure development, the combined company will be better positioned to help meet growing energy needs and power Canada’s growth ambitions.”The proposed merger would bring together Emera’s utilities in Nova Scotia, Florida and the Caribbean with Canadian Utilities’ operations in Alberta and Australia. Emera’s head office would remain in Halifax.ATCO chair and CEO Nancy Southern added that the agreement would strengthen the companies’ ability to meet rising electricity demand in Alberta and expand services in regions such as northern Canada.“ATCO share owners will participate in two focused and compelling companies," she said. "The combined Emera/Canadian Utilities company will have the scale, capabilities and capital to invest in critical energy and infrastructure projects that support growing demand, while New ATCO will be positioned to accelerate growth in housing, defence and industrial services."Existing Emera shareholders are expected to own roughly 60% of the combined company, while ATCO and Canadian Utilities shareholders would hold the remaining 40%..Cenovus to acquire Athabasca Oil in $5.7 billion oil sands deal.The transaction requires shareholder and regulatory approvals and is expected to close by the end of 2027.Under the new proposal, Canadian Utilities shareholders would receive 0.755 Emera shares for each non-voting Class A share and 0.819 Emera shares for each Class B share.ATCO shareholders would receive 0.86 Emera shares for each ATCO share.Emera said the offer values the ATCO and Canadian Utilities shares involved in the transaction at $14.3 billion.Emera’s existing market capitalization is approximately $21 billion, while Canadian Utilities shareholders would receive a 20% increase in dividends under the proposed terms if the merger proceeds.“This merger is about unlocking the next wave of growth for Canadian Utilities and the customers and communities we serve,” said Bob Myles, chief executive officer of Canadian Utilities Limited.“By bringing Canadian Utilities and Emera together, we will combine complementary strengths, proven operating expertise and greater financial capacity to invest in the energy infrastructure needed for the future."The agreement also calls for ATCO’s housing, defence, and ports businesses to be separated into a new publicly traded company led by Southern and controlled by the Southern family’s holding company, Sentgraf Enterprises, which would also own approximately 7% of Emera following the merger.Southern would become co-chair of Emera’s board alongside current chair Karen Sheriff, while Balfour would remain CEO, and Canadian Utilities CEO Bob Myles would join Emera’s executive team and continue overseeing Alberta operations.The deal follows approximately 15 months of discussions that began when Balfour approached Southern over lunch during the 2025 Calgary Stampede.

ATCO, Canadian Utilities, and Emera announce $72-billion utility merger

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