Enbridge to Buy Spectra Energy for $28 Billion

Enbridge building

Enbridge Inc. (NYSE: ENB) and Spectra Energy Corp. (NYSE: SE) entered into a definitive merger agreement under which Enbridge and Spectra Energy will combine in a stock-for-stock merger for $28 billion.

The merged company will create the largest energy infrastructure company in North America and one of the largest globally based on a pro-forma enterprise value of $127 billion. The Boards of Directors of both companies unanimously approved the deal, but it is subject to regulatory approvals and other customary conditions. The deal is set to close in first quarter 2017.

When the transaction is completed, Enbridge shareholders are expected to won 57 percent of the combined company, and Spectra Energy shareholders will own 43 percent. The combined company will be called Enbridge Inc. Greg Ebel, President and Chief Executive Officer of Spectra Energy, will become chairman of Enbridge when the deal closes. Al Monaco will continue to serve as President and CEO of the combined company. Guy Jarvis will be appointed as President, Liquids Pipelines & Major Projects; Bill Yardley, President, Gas Transmission & Midstream; and John Whelen, Executive Vice President & Chief Financial Officer.

The combined company will be headquartered in Calgary, Alberta. The gas pipelines business will be in Houston, Texas; liquids pipelines in Edmonton, Alberta, and gas distribution based in Ontario.

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