The parent company of Nova Scotia Power, Emera, is acquiring U.S. energy company TECO for $10.4 billion US.

The deal has been approved by TECO's board of directors and is expected to close by mid-2016, once it has been cleared with federal regulators as well as state regulators in Florida and New Mexico — where TECO has operations.

Emera sees potential for growth in the U.S. markets it will soon enter.

"TECO Energy's operations are located in vibrant markets experiencing job growth and a strong housing market that are expected to contribute to some of the strongest customer growth in the U.S.," the company said in a statement released Friday.

As part of the sale, shareholders in TECO Energy will receive $27.55 US per share in cash — a 48 per cent increase over the July 15, 2015, closing share price.

The deal will mean Emera has about $20 billion US in assets and more than 2.4 million electric and gas customers.

More than half of Emera's assets — 56 per cent — will now be in Florida, followed by 23 per cent in Canada, 10 per cent in New England, six per cent in New Mexico and five per cent in the Caribbean.

Emera says the sale will make it one of the 20 largest energy utilities in North America.

Before the purchase takes effect, TECO plans to sell off its coal division, TECO Coal, which owns and operates coal-production facilities in Kentucky, Tennessee and Virginia.

As part of the deal, the headquarters for TECO Energy and Tampa Electric and Peoples Gas will remain in Tampa, Fla., while the headquarters for New Mexico Gas Co. will stay in Albuquerque, N.M.