Emera Incorporated

Schneider Electric SE agreed to acquire U.S.-based engineering software developer PTC Inc. for $22.6 billion, or €20.1 billion, paying $205 per share in an all-cash deal. The transaction was among a string of major deals reported across sectors this week. Viatris said it will acquire all outstanding shares of Pacira BioSciences for $36.50 per share in cash, an aggregate equity value of $1.65 billion, while CD&R and McKesson agreed to acquire Option Care Health for $32.05 per share, valuing it at approximately $5.8 billion including debt, sending its shares up 34% in early trading Tuesday. Energy Transfer agreed to acquire Vaquero Midstream in a $2.625 billion deal consisting of $1.95 billion in cash and about 33.3 million newly issued Energy Transfer common units, and Cenovus Energy agreed to acquire Athabasca Oil in a cash-and-stock deal valued at about C$5.7 billion, a 14% premium to Athabasca's 20-day volume-weighted average trading price. Canadian utilities Emera and Canadian Utilities agreed to an all-stock merger worth C$14.3 billion, or US$10 billion, creating a combined company with a C$72 billion enterprise value and a regulated rate base of C$45 billion serving roughly 6 million customers. Separately, TKO LLC proposed to acquire Service Properties Trust's entire hospitality portfolio for $2.0 billion, and CCC Intelligent Solutions soared 13% in after-hours trading on a report that GTCR and Elliott Investment Management are in advanced discussions to purchase the car-insurance software firm.

ATCO has agreed to a CAD 6.6b takeover by Emera, paired with a spin off of its industrial services arm, a deal that turns one ATCO share into Emera plus New ATCO. The announcement has flipped ATCO from a slow mover into a deal-driven story, with a 7 day share price return of 7.89%, a 30 day gain of 8.28%, and a year to date share price return of 40.60%. The 1 year total shareholder return of 62.45% and 3 year total shareholder return of 157.42% show the latest surge comes on top of a longer run rerating as investors reassess both growth potential in the utilities assets and the risk profile of a more focused industrial services business after the spin off. ATCO last closed at CA$79.54, while the most followed narrative pegs fair value at CA$91.00, suggesting the deal news sits on top of an already optimistic long term earnings story leaning heavily on its modular housing and infrastructure platform. On the other side of that CA$91 fair value story, ATCO trades on a P/E of 49.2x, against a peer average of 40.2x and a fair ratio pointing to 39.5x.

Emera has agreed to acquire Canadian Utilities in an all-share merger of equals, turning the steady Alberta-based utility into the center of a planned Canadian energy heavyweight. Canadian Utilities now trades at CA$49.85, with the share price easing over the past quarter even as the year-to-date share price return of 16.5% sits against a much stronger 1-year total shareholder return of 33.8% and a 3-year total shareholder return above 90%. The stock carries a price-to-sales multiple of 3.6x against CA$3,761.0m in revenue, well above the estimated fair P/S ratio of 2.7x, the 1.6x for the global integrated utilities industry and 1.7x for its immediate peer group, while a CA$538.0m non-recurring loss left net margins at 1.2% versus 12% a year earlier. A discounted cash flow model flags the shares as trading 64.1% below an estimated future cash flow value of CA$139, and the dividend yield of 3.71% is not fully backed by current profits, though forecasts call for 42.1% annual earnings growth and 4.3% revenue growth. Sentiment could shift quickly if the Emera merger timetable slips or regulators attach conditions that weaken the appeal of the all-share tie-up.

Emera, ATCO and Canadian Utilities announced a definitive agreement to combine Emera and Canadian Utilities in a merger of equals, creating a Canadian utility and energy infrastructure powerhouse with approximately $72 billion in pro forma enterprise value, approximately $45 billion in rate base and about six million customers. Based on the implied enterprise value of Canadian Utilities of $28 billion, the transaction is expected to be the largest merger in history between two Canadian companies and will form a Top 20 North American utility. Under the all-share terms, Emera will acquire all outstanding shares of Canadian Utilities, valued at approximately $14.3 billion, with Canadian Utilities Class A shareholders other than ATCO receiving 0.755x of an Emera common share, Class B shareholders other than ATCO receiving 0.819x, and ATCO Class I and Class II shareholders receiving 0.865x. Emera shareholders are expected to own approximately 60% of the combined company and former ATCO and Canadian Utilities shareholders approximately 40%, with Canadian Utilities shareholders benefiting from an approximately 20% expected increase in dividend income. In connection with the transaction, ATCO will spin off its housing, defence and investments businesses, including ports and retail energy, into a new publicly traded company, New ATCO, led by Nancy Southern as Chair and Chief Executive Officer, while Scott Balfour will serve as CEO of the combined company, which will operate as Emera and keep its public company headquarters in Halifax. The combined company plans a $32 billion capital plan through 2030 supporting expected average annual rate base growth of 7% to 8%, and the transaction, subject to shareholder, court and regulatory approvals, is expected to close in the third or fourth quarter of 2027.

Emera has raised its quarterly dividend to CA$0.74 per share, implying an annual payout of CA$2.96, a 1% increase from the previous CA$2.93 level. The move comes after a softer stretch for the share price, with a 90 day return down 7.98% and a 30 day return down 1.88%, though the 1 year total shareholder return of 6.77% and 3 year total shareholder return of 68.08% reflect longer-term momentum. The most followed valuation narrative pegs Emera's fair value at roughly CA$74.45 per share, above the recent CA$68.42 close, framing the higher dividend as an 8% undervalued case. That view rests on heavy investment in grid modernization, renewables including a $2+ billion solar expansion in Florida, and infrastructure resilience, but faces risks from refinancing needs and exposure to cyber incidents and extreme weather. On valuation, Emera trades at 21.8x earnings, above Canadian peers at 20.9x and the wider North American utilities group at 19.8x, while the fair ratio sits higher at 29x.

Emera reported second-quarter adjusted earnings of C$212 million, or C$0.69 per share, as it advances asset sales to strengthen its balance sheet. The company expects the sale of New Mexico Gas to Bernhard Capital Partners to close later in August, generating after-tax proceeds of approximately C$650 million to C$700 million, which will be used to reduce holding-company debt. Emera also completed the sale of Grand Bahama Power Company on May 12, and year-to-date adjusted earnings totaled C$627 million, up C$12 million from the prior-year period. The company remains on track to deliver compound annual adjusted EPS growth above its 5% to 7% target range through 2026 and expects growth within that range through 2030. Emera deployed more than C$1.7 billion of capital during the first half of 2026 and is targeting annual rate-base growth of 7% to 8% through 2030.

Emera Inc announced a quarterly cash dividend of $0.52 per share, payable on August 17, 2026 to shareholders of record as of the July 31, 2026 ex-dividend date. The company has maintained a consistent dividend payment record since 2009, with a 12-month trailing yield of 3.95% and a forward yield of 3.84%. Over the past decade, annual dividends per share have grown at a 5.10% rate, though the payout ratio stands at 0.89 as of March 31, 2026, raising sustainability concerns. Emera's profitability rank is 7 out of 10, supported by positive net income each year over the past ten years, but recent three-year earnings per share growth has declined by approximately 1.60% per year on average.