Canadian renewable energy producer and pipeline operator Enbridge has agreed to acquire Houston-based Spectra Energy in a $28 billion all-stock deal, which the pair claim will create the largest energy infrastructure company in North America.
Spectra shareholders will receive 0.984 shares of the combined company for each common Spectra share they own, giving them a 43% interest in the merged entity to Enbridge’s 57%.
“This transaction is transformational for both companies and results in unmatched scale, diversity and financial flexibility with multiple platforms for organic growth,” Enbridge chief executive Al Monaco said.
Tumbling oil prices have forced companies including pipeline operators to consider mergers to cut costs.
The combined company’s asset base will include oil and gas pipelines, a regulated utility portfolio and renewable power generation.
Enbridge currently has interests in nearly 2GW of renewable and alternative generating capacity and said it continues to expand into wind, solar and geothermal power.
Cedar Point wind farm Colorado (Enbridge)
