FTC approves merger to create US$127 billion company
The US Federal Trade Commission (FTC) has approved the Enbridge and Spectra Energy merger that was announced in September last year.
The merger would create North America’s largest ever energy infrastructure company, known as Enbridge Inc, and valued at approximately US$127 billion.
The FTC announced that it had voted to accept agreement in place between the two companies, as well as enact firewalls governing the flow of certain information to Enbridge relating to the Discovery pipeline system in the Gulf of Mexico, and take other steps which limited Enbridge’s potential influence over actions related to the pipeline.
Spectra Energy has an indirect ownership interest in DCP Midstream, which holds a 40 per cent stake in the Discovery pipeline system.
While Enbridge, through an affiliate, also has offshore gas operations in the Gulf of Mexico.
The FTC’s decision means the agreement needs final approval under the Canadian Competition Act.
For more information visit the Enbridge website.
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