HALIFAX—Emera Inc. has announced it will acquire TECO Energy, a U.S. utility with operations and assets in Florida and New Mexico, for US$10.4 billion.
Emera, which owns Nova Scotia Power, among other utilities, said the deal will create a company with over $20 billion in assets and more than 2.4 million gas and electric customers. TECO will become a fully-owned subsidiary of the company following the all-cash deal.
“Our patient approach and disciplined investment criteria have resulted in a pure-play regulated utility transaction that we expect to be significantly accretive for Emera’s shareholders, and one that advances our strategic objectives,” Chris Huskilson, president and CEO of Emera, said. “We have found our ideal match in TECO Energy.”
Emera said the acquisition will transform the Halifax-based company from a regional to a North American energy market player. The merged company will hold about 56 per cent of its assets in Florida, 23 per cent in Canada, with the rest distributed throughout the U.S. and Caribbean.
The closing of the transaction is subject to customary closing conditions, including TECO shareholder approval, and is expected to occur by mid-2016.
As part of the effort to fund the deal, Emera has announced the planned sale of $1.9 billion in convertible debentures.