Canadian Energy Company Emera, Inc (NASDAQ:EMRAF) is all set to lay its hands on Teco Energy, Inc (NASDAQ:TE) for an amount of $6.44 billion. According to the reports, Emera has decided to acquire Teco Energy for the purpose of making an expansion into the United States.
The news has led to the rise in the price of the shares of Teco Energy as it rose to $26.70 on Friday. Teco Energy is expected to have a total of 233.6 million outstanding shares as on the date of June 30, which is computationally quite a lot of outstanding shares.
The deal between Teco Energy and Emera Inc has a value of approximately about $10.4 billion owing to the $3.9 billion debt that Teco Energy has. The reports also suggest that with the deal, the assets of Emera Inc will raise up to $20 billion. At present, the asset value of Emera Inc. is approximately about $9.89 billion.
According to the statistics, the entry of Emera Inc in the United States will see them serving approximately about 2.4 million more customers. The experts believe that this huge increase in the number of customers will make Emera Inc, one of the major players in the states of Florida and New Mexico.
In the past, Teco Energy had stated that they were looking forward to some alternatives and it seems that Emera Inc is the one that they have decided to go with. The deal between the companies is expected to go through in the recent future.
The experts believe that the deal will land in an impact in the energy market in Florida and New Mexico. But slowly and steadily, Emera Inc. is likely to move deep into the energy market of the United States.