Deals
Emera Makes $6.5 Billion Bet on U.S. Power Markets in Teco Deal
- U.S. operations would account for 71% of Emera's earnings
- Transaction to be accretive to Emera earnings in 2017
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Canadian power producer Emera Inc. agreed to buy Florida generator Teco Energy Inc. for $6.5 billion on Friday, marking its biggest acquisition to date and a major shift for the company into U.S. power and gas markets.
Under the terms of the all-cash agreement, Teco investors will receive $27.55 per common share, a 48 percent premium based on the company’s July 15 closing price, the companies said in a statement. The deal also includes the assumption of about $3.9 billion in debt. U.S. operations would account for about 71 percent of Emera’s earnings after the acquisition, up from less than half currently, the company said.