• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 47 mins Would bashing China solve all the problems of the United States
  • 22 mins Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 58 mins Model 3 cheaper to buy than BMW 3 series.
  • 3 hours Pompeo's Hong Kong
  • 1 day China to Impose Dictatorship on Hong Kong
  • 1 hour Thugs in Trumpistan
  • 14 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 39 mins China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 8 hours China’s Oil Thirst Draws an Armada of Tankers
  • 2 days Iran's first oil tanker has arrived near Venezuela
  • 3 hours Income report showing potential future spending and economic growth
  • 4 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 2 days Let’s Try This....
  • 5 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 1 day 60 mph electric mopeds
Germany Aims To Become World’s Hydrogen Hotspot

Germany Aims To Become World’s Hydrogen Hotspot

Germany is rapidly becoming Europe’s…

Have Oil Traders Abandoned Fundamentals?

Have Oil Traders Abandoned Fundamentals?

Oil prices are back at…

Enbridge, Spectra Ink A $28 Billion Merger Deal

On Tuesday, Canadian pipeline company Enbridge agreed to the purchase of Spectra Energy Corporation out of Houston. The all stock deal is valued at $28 million. In the deal, Spectra Energy Holders will receive Enbridge shares valued at approximately $40.33 each.

When the deal is closed, Enbridge shareholders will own 57 percent of the company, while Spectra holders will have the remaining 43 percent. The new entity, bearing Enbridge’s name, will be a major energy infrastructure company that is being created when the industry continues to cope with low oil prices and the resulting conditions.

The company will have assets in crude oil, liquids and natural gas pipelines, terminal and midstream operations. The company will also have a regulated utility portfolio and renewable energy operations.

Al Monaco, the chief executive of Enbridge stated: “Bringing Enbridge and Spectra Energy together makes strong strategic and financial sense, and the all-stock nature of the transaction provides shareholders of both companies with the opportunity to participate in the significant upside potential of the combined company.”

Greg Ebel, who will be the chairman of the new company noted: “Together, the merged companies will have what we believe is the finest platform for serving customers in every region of North America and providing investors with the opportunity for superior shareholder returns.”

The deal is expected to close in the first quarter of 2017, according to a statement from Enbridge and Spectra.

Of note: in an interview with the Houston Business Journal in April, Ebel, who at the time was the CEO for Spectra, stated: “We have a history of being involved in M&A and consolidation, but we don’t need to do that because we have a $10 billion backlog of contracted projects that we’re building. You can build projects cheaper than you can buy new assets. In buying new assets, you’re usually buying assets that are revenue producing, and building assets takes several years to get it done, but we’ll be on the lookout.”

By Lincoln Brown for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News