Transactions - MAY 1, 2017

Pembina buys Veresen for $7.1b

by Andrea Waitrovich

Pembina Pipeline Corp. has purchased Veresen for $7.1 billion, including debt, that would create one of the largest energy infrastructure firms in Canada.

Both Calgary-based companies boast assets in several key oil-and-gas producing areas in Alberta, British Columbia and the Bakken Formation. Pembina has a pipeline network stretching more than 6,000 miles across Western Canada and into the United States, including large oil sands assets. It will add Veresen’s natural gas gathering, processing and pipeline assets in Western Canada.

Under the deal, Pembina will acquire nearly 5.8 billion cubic feet per day of gas processing infrastructure in the Western Canadian Sedimentary Basin, estimated to hold some of the largest gas and oil reserves in the world. The companies said the combined entity will be valued at $24 billion.

The transaction requires approval by both companies’ shareholders.

The merger follows Enbridge’s $28 billion acquisition of Houston-based Spectra Energy and TransCanada’s acquisition of Columbia Pipeline Group of Houston in a deal valued at $13 billion.

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