Emera, a Canadian energy and service company, confirmed the acquisition of TECO Energy, Friday. The acquisition amount was reportedly at $6.48 billion, but the companies valued the deal at $10.4 billion, including the assumption of debt for $3.9 billion.
TECO's shareholders will receive a $27.55 per share from the Halifax-based company, Reuters reported. That is reportedly 48 percent premium to TECO's closing stock price on July 15.
"The acquisition provides Emera with a new platform in growth markets, and further opportunities to supply customers with cleaner generation," the company stated in a news release, Ledger Gazette learned.
Once the deal has closed, the company will have an estimated $20 billion in assets, thus, making it a top 20 North American regulated utility. The deal is expected to close in the middle of 2016, according to the report of Seattle Pi.
The transaction is subject for certain regulatory and government approval, which includes approval by the New Mexico Public Regulation Commission, the Federal Energy Regulatory Commission, according to the official site of TECO Energy.
The deal also will have to comply with any requisites under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, before it can be closed. Emera reportedly has a history of working fruitfully through the related regulatory procedures at the federal levels and the U.S. state.
Chris Huskilson, Chief Executive Officer of Emera, reportedly said that TECO was an ideal match for the company as both organization aim to reduce emissions for a cleaner generation.
TECO Energy President and CEO John Ramil said that his team was looking forward to working with Emera.
"We are proud that Emera has recognized the value of our business and that our shareholders will be rewarded for their confidence in our company," Ramil stated.
"The TECO team looks forward to contributing to Emera's bright future and the opportunities for growth across the organization," he added.
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