In the summer of last year, as trade tensions with the United States were rising and Ottawa was advancing new infrastructure projects, Halifax-based Emera Inc. and Calgary-based Canadian Utilities began discussions to merge. The merger, valued at $72 billion, aims to create a leading North American utility company capable of capitalizing on the growing demand for power.
Atco Ltd., the controlling shareholder of Canadian Utilities, is shifting its focus towards defense, housing, and infrastructure development in various regions, including remote areas. The CEOs of Emera and Atco, Scott Balfour and Nancy Southern, initiated talks about forming a Canadian energy powerhouse to meet the increasing demand for clean power and support infrastructure growth.
The merged entity will operate under the Emera brand, maintaining headquarters in Halifax and operational offices in Calgary and Edmonton. The combined company, serving six million customers across Canada, the United States, Mexico, the Caribbean, and Australia, plans to invest $32 billion in capital by 2030.
The merger is seen as an opportunity to create a strong Canadian utility company with the financial strength to drive growth and support infrastructure needs. Post-merger, Emera is expected to have a significant presence in Florida and Alberta, two high-growth regions in North America.
Nancy Southern will lead a refocused Atco while serving as co-chair of Emera’s board. The move is aimed at unlocking value for Atco’s businesses, enabling them to pursue opportunities in defense, energy security, and housing. Shareholders of Emera, Canadian Utilities, and Atco will vote on the transaction in early 2023, subject to regulatory approvals.