Emera, ATCO and CU in C$72bn merger plan

Emera, Canadian Utilities and ATCO announced on October 6, 2026 that they have reached a definitive agreement to combine in a large-scale utility and energy infrastructure transaction. The companies said the pro forma combined enterprise value of the merged utility is approximately C$72 billion. The transaction is structured principally as an all-share combination and is designed to create a single, larger utility platform operating under the Emera name. The combined business is expected to serve about six million customers across Canada, the United States and other markets and to have an estimated C$45 billion in rate base.

Within the all-share structure, Canadian Utilities is valued at about C$14.3 billion. The deal terms include fixed exchange ratios for different share classes of Canadian Utilities and ATCO, all settled in Emera shares with an additional equity component in New ATCO for ATCO shareholders. The companies describe the result as a broader, more diversified regulated utility platform with a significant presence in multiple jurisdictions.

Under the agreed exchange ratios, Canadian Utilities Class A shareholders, other than ATCO, are to receive 0.755 Emera shares for each Class A share. Holders of Canadian Utilities Class B shares are to receive 0.819 Emera shares per share. ATCO Class I and Class II shareholders are expected to receive 0.865 Emera shares for each ATCO share, together with shares in New ATCO.

Following completion, existing Emera shareholders are expected to own roughly 60% of the combined Emera utility company. Former ATCO and Canadian Utilities shareholders are expected to hold about 40%. This ownership split reflects the relative contributions of the businesses to the new C$72 billion platform while keeping the combined utility listed under the Emera banner.

As part of the transaction, ATCO will spin off its industrial services operations into a separate, publicly traded company to be called New ATCO. ATCO Chair and Chief Executive Officer Nancy Southern is expected to lead New ATCO after the separation. This structure separates the industrial services operations from the regulated utility businesses that will reside in the enlarged Emera.

For the combined Emera utility, Scott Balfour is set to serve as Chief Executive Officer. Nancy Southern and Karen Sheriff are expected to act as co-chairs of the combined company’s board of directors. Canadian Utilities’ CEO Bob Myles will join the executive team of the enlarged Emera, integrating senior leadership from all three organizations into the new governance structure.

The companies expect the merger to close in late 2027, indicating a target of the third or fourth quarter of 2027. Completion is subject to customary shareholder approvals at the involved companies, as well as multiple court, regulatory and stock exchange approvals. These include approvals from Canadian and U.S. regulators and relevant stock exchanges named by the companies, reflecting the cross-border scope of the combined utility operations.

Looking ahead, the merged Emera utility plans a multiyear capital program of about C$32 billion through 2030. The companies are targeting average annual rate-base growth of roughly 7%–8% through that period. The planned investment program is intended to support the enlarged asset base and customer footprint of the combined business once the transaction closes and integration is completed.