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Enbridge and Spectra announce US$28 b merger

Enbridge and Spectra announce US$28 b merger

8 September 2016 Featured, North America 0

The merger between Enbridge and Spectra Energy is valued at US$28 billion and will create North America’s largest ever energy infrastructure company.

The combined company will be called Enbridge Inc., and be valued at approximately US$127 billion.

The transaction was unanimously approved by the boards of both companies and the deal is expected to be finalised in early 2017.

Enbridge Inc. President and Chief Executive Officer Al Monaco said “Over the last two years, we’ve been focused on identifying opportunities that would extend and diversify our asset base and sources of growth beyond 2019.

“We are accomplishing that goal by combining with the premier natural gas infrastructure company to create a true North American and global energy infrastructure leader.

“This transaction is transformational for both companies and results in unmatched scale, diversity and financial flexibility with multiple platforms for organic growth.

Spectra Energy President and Chief Executive Officer Greg Ebel said “The combination of Enbridge and Spectra Energy creates what we believe will be the best, most diversified energy infrastructure company in North America, if not the world.

“The merged company will have what we believe is the finest platform for serving customers in every region of North America and providing investors with the opportunity for superior shareholder returns.”

Enbridge shareholders are expected to own approximately 57 per cent of the merged company, while Spectra shareholders will own 43 per cent.

The asset base of the new company will include crude oil, liquids and natural gas pipelines, terminal and midstream operations, a regulated utility portfolio, and renewable power generation.

Combined revenues for the 2016 financial year would have been in excess of US$31 billion.

For more information visit the Enbridge website.

If you have company news you would like covered in Pipelines International contact Assistant Editor Nick Lovering at nlovering@gs-press.com.au


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