Emera (TSE:EMA) Announces it Will Acquire Maine & Maritimes (AMEX:MAM)

Emera (TSE:EMA), the energy and service firm based in Canada, has made an offer to acquire all of Maine & Maritimes (AMEX:MAM) for $45 a share.

Maine & Maritimes is an energy company in the United States and the parent company of MAM Utility Services Group and Maine Public Service Company.

The price offered for Maine & Maritimes is a 41 percent premium over the closing price on Thursday of about $32; a pretty hefty price to pay for the company. No wonder the board of Maine & Maritimes had no problem approving the deal. And it's highly unlikely there will be many shareholders complaining the deal undervalued the company.

Even though approved by the board, there are the usual regulatory hurdles to cross, such as approval from the  Federal Energy Regulatory Commission, as well as the Maine Public Utilities Commission. The process for both will take an estimated six to eight months for final approval, assuming that's the outcome, which is probably will be.

Funding for the deal will come from credit agreements Emera already has in place. That will be the case until they secure longer term financing for the deal.

Assuming the deal closes, it should give Emera a nice increase in earnings for the year, as if it is approved, it should close before the end of 2010.