A merger between Enbridge and Spectra Energy will create the largest energy infrastructure company in North America.
The new company, Enbridge Inc, will be split with 57% owned by Enbridge shareholders and 43% by Spectra Energy shareholders. It will be one of the largest globally based on a pro-forma enterprise value of $127 billion.
The all-stock transaction is valued at around $28 billion.
Assets at the companies comprise crude oil, liquids and natural gas pipelines, storage terminal and midstream operations as well as renewable power generation.
The company will be ‘positioned to provide integrated services and first and last mile connectivity to key supply basins and demand markets’.
Al Monaco, president and CEO of Enbridge Inc, says: ‘Over the last two years, we have 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.
‘We believe our combination of best-in-class assets, superior growth and strong commercial underpinning of our business will be unrivalled in our sector.
Greg Ebel, president and CEO of Spectra Energy will become chairman of Enbridge after the transaction closes.