Enbridge Inc. in Calgary, Alberta, and Spectra Energy Corp. in Houston announced Sept. 6 that they’ve agreed to merge in a stock-for-stock transaction that values Spectra’s common stock at approximately $28 billion. This combination will create the largest energy infrastructure company in North America and one of the largest globally with an approximate value of $127 billion. The transaction has been unanimously approved by both companies’ boards of directors, and it’s expected to close in the first quarter of 2017, pending shareholder and regulatory approvals and some other conditions.
With assets that include 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. On a combined basis for the 12 months ended June 30, 2016, the new company would have generated revenues in excess of $31 billion and combined earnings before interest and taxes (EBIT) of $4.4 billion.
