NEW YORK: 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.
Spectra is one of the backers of the planned Nexus Pipeline, in partnership with Michigan-based DTE Energy. The $2 billion, 250-mile pipeline would carry natural gas from Ohio’s Utica Shale westward across Northern Ohio to Defiance and north to Detroit and Ontario, where it would connect with existing pipelines.
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.
