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Calgary based Enbridge buying Spectra Energy for an estimated $37 Billion

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DH Calgary Staff Sep 05, 2016 10:47 pm

Enbridge and Spectra Energy announced today they will combine in a stock-for-stock merger transaction which values Spectra Energy’s common stock around C$37 billion.

The deal will create a North American energy infrastructure giant headquartered in Calgary with the combined company’s natural gas pipelines business based in Houston. The company’s liquids pipelines business would be based in Edmonton and Enbridges’ natural gas distribution business will remain in Ontario.

In a release, Al Monaco, President and Chief Executive Officer, Enbridge Inc 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.

“With combined secured projects in execution of C$26 billion (US$20 billion) and another C$48 billion (US$37 billion) of projects under development, the Transaction allows us to extend our anticipated 10-12 percent annual dividend growth through 2024.”

The merger is expected to save the companies $540 million on an annualized basis, the majority of which should be achieved in the latter part of 2018.


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DH Calgary Staff
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