Halifax-based Emera said on Tuesday that it would acquire Canadian Utilities in an all-stock deal worth $14.3 billion, creating one of Canada’s largest utilities as power ‌companies seek to scale amid booming electricity demand.

Emera shareholders are expected to own about 60 per cent of the merged company — which will have a value of about $72 billion. Canadian Utilities shareholders will own about 40 per cent, Emera said.

Emera owns or has a stake in about a dozen operations related to energy generation, transmission and distribution in Atlantic Canada, the United States and the Caribbean, and is the parent company of Nova Scotia Power.

Rising power demand spurred by increasing electrification and industrial growth is driving consolidation in the North American power sector, with companies seeking scale to fund investments in grid upgrades and ⁠transmission infrastructure.

Under the ⁠deal, Class A shareholders ‌of Canadian Utilities, excluding ATCO, will receive 0.755 Emera shares for each share they hold, while Class B shareholders will receive 0.819 Emera shares apiece.

The deal values Canadian Utilities’ Class A ⁠shares at about $51.57 each, a premium of roughly 0.7 per cent to the stock’s last closing price on Monday, according to LSEG data.

Emera said the ‌deal would strengthen its financial position and support a planned $32-billion capital program through 2030, with an expected annual rate-base growth of seven to eight per cent.

The combined company will be led by Emera’s president and CEO Scott Balfour upon the deal’s expected closing in the ⁠third or fourth quarter of 2027.

The new company will operate as Emera ⁠and maintain its public company headquarters in Halifax, as well as Canadian Utilities’s corporate and operational centres in Calgary, Edmonton and Perth, Australia.

Meanwhile, ATCO, which holds ⁠nearly ⁠37 per cent of the outstanding non-voting shares and all outstanding voting shares of Canadian Utilities, will spin off into a publicly traded ⁠industrial services company called New ATCO, Emera said.

ATCO’s chair and CEO Nancy Southern will serve as the CEO of the new entity, which will be focused on housing, defense and investments, including ports and retail energy.