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Emera Inc. and ATCO subsidiary 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.
The company brings together the Halifax-based utility, which also has operations in the United States and the Caribbean, with Calgary-based Canadian Utilities, which is also active in Canada’s North, Mexico, Australia and Puerto Rico.
“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.
Under the agreement, Emera will acquire Canadian Utilities and Atco Ltd., which owns a controlling stake in Canadian Utilities. It operates several commercial and retail utility businesses under the ATCO banner, such as ATCO Gas and ATCO Electric.
Meanwhile, Atco’s industrial services business will be spun out as a new public company. It will be made up of housing, defence and investments, including ports and retail energy, and will be led by Atco CEO Nancy Southern, whose grandfather founded the company eight decades ago.
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“The combined Emera/Canadian Utilities company will have the scale, capabilities and capital to invest in critical energy and infrastructure projects that support growing demand, while New Atco will be positioned to accelerate growth in housing, defence and industrial services,” Southern said in a news release.
ATCO Ltd. CEO Nancy Southern speaks to reporters following the company’s annual general meeting in Calgary on Wednesday, May 13, 2026.
Lauren Krugel/ The Canadian Press
Emera and ATCO said the transaction is expected to be the largest merger in history between two Canadian companies.
Atco shareholders will receive an interest in both the combined energy company, Emera and the purpose-built new Atco.
“Together, these companies are expected to be better equipped to pursue opportunities created by economic growth, infrastructure expansion and increasing focus on security and resilience, creating long-term value for shareowners and Canadians alike.”
An ATCO trailer in Victoria, British Columbia, July 28, 2020.
THE CANADIAN PRESS IMAGES/Don Denton
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.
The new utility company, which will operate under the Emera banner, will continue to be based in Halifax, but maintain Canadian Utilities’ corporate and operational headquarters in Calgary and Edmonton, as well as in Perth, Australia.
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.
With files from Karen Bartko, Global News
© 2026 The Canadian Press
