Friday, September 16, 2016
Calgary-based Enbridge Inc. and Spectra Energy Corp. (Houston) have entered into a merger agreement under which the two companies will combine in a stock-for-stock transaction. The merger will create one of the largest energy infrastructure companies in North America with a value of about $127 billion. Enbridge president and CEO Al Monaco will serve as president and CEO of the combined company. Greg Ebel, Spectra president and CEO, will
serve as non-executive chairman of Enbridge’s board of directors.
The agreement was unanimously approved by the boards of directors of both companies. The transaction is expected to close in the first quarter of 2017, subject to shareholder and regulatory approvals. Under the terms, Spectra Energy shareholders will receive 0.984 shares of the combined company for each share of Spectra common stock they own. Upon completion, Enbridge shareholders are expected to own about 57% of the combined company and Spectra shareholders are expected to own about 43%. The combined company will be called Enbridge Inc.
The companies note the merger brings together two complementary platforms to create a larger energy infrastructure company. With an asset base that includes crude oil, liquids, and natural gas pipelines, terminal and midstream operations, a regulated utility portfolio, and renewable power generation, the combined company will be positioned to provide integrated services and first- and last-mile connectivity to key supply basins and demand markets.
“Over the past two years, we’ve been focused on identifying opportunities that would extend and diversify our asset base and sources of growth beyond 2019,” said 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.”
serve as non-executive chairman of Enbridge’s board of directors.
The agreement was unanimously approved by the boards of directors of both companies. The transaction is expected to close in the first quarter of 2017, subject to shareholder and regulatory approvals. Under the terms, Spectra Energy shareholders will receive 0.984 shares of the combined company for each share of Spectra common stock they own. Upon completion, Enbridge shareholders are expected to own about 57% of the combined company and Spectra shareholders are expected to own about 43%. The combined company will be called Enbridge Inc.
The companies note the merger brings together two complementary platforms to create a larger energy infrastructure company. With an asset base that includes crude oil, liquids, and natural gas pipelines, terminal and midstream operations, a regulated utility portfolio, and renewable power generation, the combined company will be positioned to provide integrated services and first- and last-mile connectivity to key supply basins and demand markets.
“Over the past two years, we’ve been focused on identifying opportunities that would extend and diversify our asset base and sources of growth beyond 2019,” said 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.”
