Emera Inc (EMA) News & EventsEMAEmera Inc

Emera and Canadian Utilities Merge, Enterprise Value Approximately $72B

Emera, ATCO and Canadian Utilities today announced a definitive agreement to bring together Emera and Canadian Utilities in a merger of equals, creating a Canadian utility and energy infrastructure powerhouse with the scale to help power Canada's growth ambitions, while continuing to invest in and grow its operations across its jurisdictions, including in the high growth markets of Alberta and Florida. The combined company is expected to have a pro forma enterprise value of approximately $72B, approximately $45B in rate base and serve approximately six million customers across Canada, the United States and international markets. It will have greater financial strength, broader capabilities, and enhanced investment capacity to support expected growing energy and infrastructure needs across its operations. This increased scale will position the company to support a range of capital-intensive priorities, electrification projects, major natural gas and electric transmission investments, large load customers, export infrastructure and other large-scale energy infrastructure projects. The new company will operate as Emera. Its public company headquarters will remain in Halifax, while maintaining Canadian Utilities' corporate and operational headquarters in Calgary and Edmonton, with a strong continued presence in Canadian Utilities' key markets including Perth, Australia. Emera's U.S. operations will continue to be headquartered in Tampa, Florida. Based on the implied enterprise value of Canadian Utilities, the transaction is expected to be the largest merger in history between two Canadian companies and will form a Top 20 North American utility. Under the terms of the arrangement agreement, Emera will acquire all the issued and outstanding shares of Canadian Utilities and ATCO, and the transaction will be structured such that ATCO's industrial services business will be spun-out as New ATCO. The merger of equals will be carried out through an acquisition by Emera of all the outstanding shares of Canadian Utilities, valued at approximately $14.3B. The transaction is structured as an all-share transaction, enabling Canadian Utilities' shareholders to participate in the governance and future direction of a larger, more geographically diversified energy and utilities company, while ATCO shareowners will receive shares of both the combined company and New ATCO. ATCO and Canadian Utilities non-voting shareholders will receive Emera voting common shares, enabling them to participate in the governance and future direction of the combined company. Canadian Utilities preferred shares will remain outstanding, and no fractional Emera shares will be issued. Following completion of the transaction, existing Emera shareholders are expected to collectively own approximately 60% of the combined company, while former ATCO and Canadian Utilities shareholders are expected to collectively own approximately 40%. The share-for-share structure provides shareholders with continued participation in the combined company's expected enhanced scale, geographic diversification, financial flexibility and long-term earnings and dividend growth potential. Completion of the transaction is subject to the satisfaction of customary conditions, including applicable shareholder, court and regulatory approvals. The transaction is expected to close in the third or fourth quarter of 2027.

Emera and Canadian Utilities to Merge

Emera, Canadian Utilities to combine in a merger of equals

Company Commits to 5%-7% Adjusted EPS Growth Through 2030

Remains committed to 5%-7% adjusted EPS growth through 20303.