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Enbridge buying Spectra for $28 billion, creating largest energy infrastructure firm
HOUSTON, September 6, 2016 (PCW) -- Canadian firm Enbridge said on Tuesday it was buying Houston-based Spectra energy in an all-stock transaction amounting to $28 billion. The move would create North America’s largest energy infrastructure company, valued at around $127 billion.
The boards of directors of both companies have already agreed to the deal, which is expected to close in 1Q 2017.
Upon completion of the deal, Enbridge shareholders will own some 57% of the combined company --- which will be called Enbridge Inc --- while Spectra shareholders will own about 43%.
Al Monaco will continue to serve as President and Chief Executive Officer of the combined company. Spectra’s current CEO, Greg Ebel, will serve as non-executive Chairman of Enbridge's Board of Directors. The headquarters of the combined company will be in Calgary. Houston will be the new company's gas pipelines business unit center; Edmonton, Alberta will remain the business unit center for liquids pipelines, with gas distribution continuing to be based in Ontario.
The combined company will own and operate some 30,320 km (18,820 miles) of liquids pipelines and 79 million barrels in liquids storage, as well as 31,080 km (19,300 miles) miles of natural gas pipelines and 415 Bcf of gas storage, among others. -- Samantha Hartke