💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

UPDATE 1-FTC approves Enbridge deal to buy Spectra with conditions

Published 2017-02-16, 01:57 p/m
© Reuters.  UPDATE 1-FTC approves Enbridge deal to buy Spectra with conditions
SEP
-
NG
-
ENB
-

(Adds details on deal, agreement with FTC)

WASHINGTON, Feb 16 (Reuters) - Canada's Enbridge Inc ENB.TO and Spectra Energy Corp (NYSE:SE) SE.N have won U.S. antitrust approval for a $28 billion merger that will create the largest North American energy infrastructure company.

The Federal Trade Commission said on Thursday that it would approve the deal.

The merger was announced in September 2016. pipelines mainly send Canadian crude from oil sands to refiners on the U.S. Gulf Coast, while Spectra's network ships natural gas to the U.S. East Coast.

Share prices of both Enbridge and Spectra were down slightly on Thursday. Enbridge was trading at $55.31, down 1.09 percent, while Spectra was at $41.55, down less than 1 percent.

The FTC's conditions were aimed at preventing a reduction of competition among natural gas pipeline providers in the Gulf of Mexico off Louisiana's coast.

Enbridge owns the Walker Ridge Pipeline while Spectra has an indirect stake in the competing Discovery Pipeline through its interest in DCP Midstream. Once the deal is concluded, the merger would give Enbridge ownership interests in the two closest pipelines in parts of the Gulf of Mexico, the FTC said in a legal filing.

To resolve this, Enbridge agreed to establish firewalls that prevent it from accessing non-public information about the Discovery Pipeline, among other steps. Enbridge must also notify the FTC before increasing its DCP stake or acquiring other pipelines in the region.

The condition is to remain in place for 20 years, the FTC said in a statement.

The companies also announced that the FTC had approved the deal. "The final regulatory requirement for closing is clearance under the Canadian Competition Act. The companies continue to expect the transaction to close in the first quarter of this year," they said in a statement.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.