The US$28 billion merger of Enbridge and Spectra creates the largest ever energy infrastructure company ever in North America.
The company will be called Enbridge Inc., and be valued at approximately US$127 billion. The seal should be to be finalized in early 2017. “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." stated Enbridge Inc. President and Chief Executive Officer Al Monaco.
“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.”
The company will include crude oil, liquids and natural gas pipelines, terminal and midstream operations, a regulated utility portfolio, and renewable power generation among its assets. The revenues of the two companies for the 2016 financial year would have been in excess of US$31 billion.
Source: Pipeline International