Emera Inc. and Canadian Utilities Ltd. have agreed to combine in an all-stock merger that the companies value at $72 billion, creating one of the largest utilities in North America. Emera and ATCO Ltd. said it is expected to be the largest merger in history between two Canadian companies. The deal comes as electricity demand rises with electrification and infrastructure development, including demand from artificial intelligence data centres.

The combined utility will operate under the Emera name, with its public company headquarters remaining in Halifax. Canadian Utilities’ corporate and operational headquarters in Calgary and Edmonton, as well as its location in Perth, Australia, will also remain. Emera chief executive Scott Balfour will continue to lead the company.

After the merger, Emera is expected to serve six million customers in parts of Canada, the United States, Mexico, the Caribbean and Australia. Its capital plan calls for $32 billion in spending. Emera expects Florida and Alberta to account for 80 per cent of its post-merger operations, describing both as among North America’s highest-growth regions.

“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,” Balfour said.

Under the agreement, Emera will acquire all outstanding Canadian Utilities shares. Those shares are 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 hold about 40 per cent.

The transaction would also reshape Calgary-based ATCO, which controls Canadian Utilities. Canadian Utilities operates commercial and retail utility businesses under the ATCO banner, including ATCO Gas and ATCO Electric. ATCO plans to refocus as a publicly traded infrastructure services firm comprising housing, defence and investments, including ports and retail energy. ATCO chief executive Nancy Southern is to lead the new firm.

“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,” Southern told analysts on a conference call Tuesday.

Southern’s grandfather founded ATCO eight decades ago. She said the family-controlled company was ready to give up its Canadian Utilities investment, which it has held since 1980. She said the change would let ATCO’s remaining businesses pursue opportunities in defence, energy security and housing, areas that are priorities for Prime Minister Mark Carney’s government amid a turbulent cross-border trading relationship, affordability pressures and geopolitical turmoil.

“I don’t see us, from a strict utility perspective, being able to compete in a world where scale matters so much today,” Southern said, pointing to rising demand from AI 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.”

ATCO, a name that stands for “Alberta Trailer Company,” was founded in Calgary in 1947 by S.D. Southern and his son Ron. The company began by providing utility trailers and worker accommodation during Canada’s first major oil boom, then expanded into natural gas, petroleum and electricity.

Shareholders of Emera, Canadian Utilities and ATCO are expected to vote on the transaction early next year. The deal also requires court, regulatory, competition and stock exchange approvals in numerous jurisdictions.

Based on reporting by Global News Edmonton.