While the relative strength of the US dollar is hindering most foreign buyers from entering the US utility space, Canadians are an exception, adds a utility banker. That’s an advantage for a Canadian buyer.” All were outbound transactions.Īnd in September, Nova Scotia-based Emera acquired Florida-based TECO in a $10.4 billion deal.Īccording to the CEO of TECO, John Ramil, who spoke about Canadian buyers in the context of the Emera deal at the recent S&P Global Power and Gas M&A event in New York, “They operate in a market that seems to be much more patient and (have a) longer-term view than we have in the US. This year we have already seen Fortis acquire ITC for $11.3 billion Ontario-based Algonquin Power & Utilities Corp acquire Missouri-based Empire District Electric Company for $2.4 billion and Ontario-based Brookfield Renewable Energy Partners acquire Colombian power generator Isagen for $4.667 billion. “We have a lot of companies skilled at developing infrastructure,” so it is natural for Canadian companies in the sector to go outbound and pursue opportunities. “We are a big country with a lot of infrastructure on a per capita basis,” adds a Canadian legal advisor with clients in the power sector. And when it comes to M&A auction scenarios, many US national utilities have other spending priorities than paying large premiums for acquisitions, the advisor says.
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