On February 27, 2017, Enbridge (headquartered in Calgary, Alberta), acquired Houston-based Spectra Energy—creating the largest energy infrastructure company in North America. The stock-for-stock deal is worth US$28.7 billion. Enbridge’s major business segments are liquid pipelines, gas distribution, gas pipelines and processing, energy services, and renewable power and transmission. The acquisition adds Spectra Energy’s gas distribution, Western Canada transmission and processing, field services, and Spectra Energy Partners businesses. The combined entity has an enterprise value of US$127 billion.
This merger follows a recent trend, as North America has continued to become more interconnected in recent years and has exported large quantities of natural gas to countries such as Mexico. Consolidation for economies of scale, diversification of risk, and creation of more robust, balanced portfolios (including cross-border portfolios) is likely to continue.
Enbridge: Enbridge and Spectra Merger FAQs
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Additional Contributing Authors: Luke Williams, Tony Gonzalez
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