Emera Inc. and Canadian Utilities Ltd. have announced a merger that would form a combined company valued at $72 billion and serve six million customers across Canada, the United States and international markets. The “merger of equals” will be carried out through an acquisition by Emera of all the outstanding shares of ATCO-controlled Canadian Utilities, valued at approximately $14.3 billion. The companies said the merger is the largest in Canadian history and will create a Canadian utility and energy infrastructure powerhouse “with the scale to help power Canada’s growth ambitions,” while investing in operations across its jurisdictions, including Florida. “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,” said Emera chief executive Scott Balfour in a release. The new company will operate as Emera and remain headquartered in Halifax. Canadian Utilities’ corporate and operational headquarters in Calgary and Edmonton will be maintained, with a continued presence in key markets, including Perth, Australia. Emera’s U.S. operations will continue to be headquartered in Tampa, Florida. The companies said the transaction will form a Top 20 North American utility. Emera’s Balfour will serve as chief executive of the combined company and Canadian Utilities executive chair Nancy Southern will serve as co-chair of the board with current chair, Karen Sheriff. They said the increased scale will position the new 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. In connection with the transaction, ATCO Ltd. will spin off its other businesses into a separate publicly traded company. Nancy Southern will remain as ATCO chief executive. Emera shareholders are expected to own about 60 per cent of the combined company, with the transaction expected to be accretive to adjusted EPS in the first full year following closing. Former ATCO and Canadian Utilities’ shareholders will receive approximately 40 per cent ownership in the combined company. Could extreme heat stress the power grid enough to throw Canadians into the dark?Cenovus buys Athabasca Oil for $5.7 billion, Suncor sells offshore stakes Emera makes about 70 per cent of its earnings from operations in Florida, while Canadian Utilities makes approximately 80 per cent from operations in Alberta. The combined company will create approximately 95 per cent of earnings from regulated utilities and approximately 80 per cent of earnings generated in Florida and Alberta, two of the highest growth jurisdictions in North America. • Email: dpaglinawan@postmedia.com