Emera Inc. and Canadian Utilities Ltd. are joining up in an all-stock merger, forming an energy “powerhouse” worth $72 billion that would rank among the continent’s largest utilities, with the scale necessary to seize opportunities from skyrocketing power demand.
Meanwhile, Calgary-based ATCO Ltd., Canadian Utilities’ controlling shareholder, is redefining itself as a more nimble firm focused on defence, housing and other infrastructure — including in far-flung and remote locales — as those needs rise to the top of governments’ priority lists.
Emera and ATCO said the transaction is expected to be the largest merger in history between two Canadian companies.
The combined utility company will operate under the Emera banner, keeping its public company headquarters in Halifax, but maintain Canadian Utilities’ corporate and operational headquarters in Calgary and Edmonton, as well as in Perth, Australia.
Chief executive Scott Balfour will remain at the helm. Post-merger Emera is to serve six million customers spanning various parts of Canada, as well as the United States, Mexico, the Caribbean and Australia.
“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 Scott Balfour, Emera’s chief executive.
The combined Emera-Canadian Utilities plans to spend $32 billion through its capital plan. Emera expects that 80 per cent of its post-merger operations will be in Florida and Alberta, two of the highest growth regions in North America.
Get weekly money news
Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
Canadian Utilities operates several commercial and retail utility businesses under the ATCO banner, such as ATCO Gas and ATCO Electric.
Atco chief executive Nancy Southern is to lead the new publicly traded infrastructure services firm. It will be made up of housing, defence and investments, including ports and retail energy.
“Post the merger and the full transaction closure, you’re going to see a very interesting Atco — entrepreneurial, ready to go and compete, not afraid of remote and harsh conditions, and a track record of people that have experience,” she told analysts on a conference call Tuesday.
Southern’s grandfather founded the company eight decades ago.
She said it was the right time for the family-controlled firm to let go of its investment in Canadian Utilities, which it has held since 1980.
“I don’t see us, from a strict utility perspective, being able to compete in a world where scale matters so much today,” she said, citing the burgeoning hunger from artificial intelligence data centres and electrification.
“We’ve never felt as a family that we want to limit our businesses and we believe … it’s very important to allow our businesses to exercise the opportunities available to them.”
The move also frees up Atco’s remaining business to pursue opportunities in defence, energy security and housing — all big priorities under Prime Minister Mark Carney’s government as it contends with a tumultuous cross-border trading relationship, affordability pressures and geopolitical turmoil.
Under the deal, Emera is to acquire all of the outstanding shares of Canadian Utilities, valued at about $14.3 billion.
Existing Emera shareholders are expected to own about 60 per cent of the combined utility, while former Atco and Canadian Utilities shareholders are expected to own about 40 per cent.
ATCO, which stands for “Alberta Trailer Company,” was founded by a S.D. Southern and his son Ron in Calgary in 1947 to provide utility trailers and worker accommodations during Canada’s first big oil boom.
The ATCO Group of companies later expanded into the natural gas and petroleum as well as electricity industries.
Shareholders of Emera, Canadian Utilities and Atco are to vote on the transaction early next year. It is also subject to court, regulatory, competition and stock exchange approvals in numerous jurisdictions.
With files from Karen Bartko, Global News
© 2026 The Canadian Press
