The utilities sector is trading significantly higher, with the XLU ETF up 1.96%, largely driven by news of a major merger between Canadian utility companies Emera and Canadian Utilities. [6, 8] This all-stock deal, creating a combined entity with an enterprise value of about $72 billion, has injected positive sentiment into a sector that has recently underperformed. [1, 12]
The move also comes amid a broader reassessment of the sector, which has been pressured by rising interest rates but is also benefiting from a strong long-term demand outlook driven by data centers and electrification. [2, 4, 11]