Pipeline Operator Enbridge to Buy Spectra Energy for $28 Billion
NEW YORK (AP) — Canada’s Enbridge is buying Houston-based Spectra Energy for about $28 billion, creating North America’s largest energy infrastructure company.
Both companies operate pipelines that deliver oil and natural gas.
Under the terms of the deal announced Tuesday, Spectra Energy shareholders will receive 0.984 a share of the combined company, or about $40.33 for each Spectra Energy share they own.
When the deal closes, which is expected to happen in the in the first quarter of 2017, Enbridge shareholders will own about 57 percent of the combined company and Spectra Energy shareholders will own about 43 percent.
The combined company will be called Enbridge Inc. and keep its current headquarters in Calgary, Canada.
Enbridge shares fell 26 cents to $40.73 before the stock market opened Tuesday. Shares of Spectra Energy Corp. rose $3.48, or 9.6 percent, to $39.63.
Related News
Related News
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Kinder Morgan Declares Force Majeure on West Texas Gas Pipeline After Fire
- Williams Delays Louisiana Pipeline Project Amid Dispute with Competitor Energy Transfer
- Venezuela Proposes Alternative Payment Plan as Weak Bids Surface in Citgo Auction
- Baker Hughes Wins Contract for Huge Aramco Gas Expansion Project
- Enbridge Picks Contractors for Great Lakes Tunnel Project, Securing Line 5 Pipeline Route
- Russia's Gazprom Sees Worst Loss in Decades as European Gas Sales Collapse
- Shell Nigeria Inks $100 Million Gas Pipeline Deal with Oyo State
Comments