A Canadian energy company on Tuesday completed its acquisition of Emera Maine as part of a $1.3 billion deal.
ENMAX Corp. of Calgary, Alberta, said it closed the $959 million transaction to acquire Maine’s second-largest utility from its parent company, Nova Scotia-based Emera Inc. With assumed debt, the deal is worth $1.3 billion.
“We are pleased to have completed this acquisition, as it reflects our strategy to grow ENMAX’s regulated utility business in North America, leveraging our expertise in the provision of safe, reliable, regulated transmission and distribution electricity services,” said Gianna Manes, president and CEO of ENMAX. “ENMAX has made significant, long term commitments to Emera Maine’s employees, customers, and Maine communities, and we look forward to delivering on our commitments and moving forward together.”
Emera Maine, which has 159,000 customers, will continue to operate out of headquarters in Bangor, according to ENMAX. A new name for the utility will be unveiled at a later date.
The news comes nearly three weeks after the Maine Public Utilities Commission voted 2 to 1 to reject the proposed sale, citing concerns about risks to ratepayers. Last week, the commission reversed when it unanimously voted to allow the sale to proceed after several changes were made to the proposal.
The changes included an extension on how long Emera Maine must wait before it can raise customer rates, an increase in rate credits for customers, service quality measures the company must meet for three years and tougher restrictions on dividends paid to shareholders. ENMAX’s sole shareholder is the city of Calgary.
The completed sale comes almost exactly a year after Emera Maine’s parent company reached a deal to sell the subsidiary to ENMAX.