TransCanada Corp., the company behind the controversial Keystone XL oil pipeline, said Thursday it will buy Columbia Pipeline Group for US$10.2 billion.
The acquisition will create one of North America’s largest regulated natural gas transmission businesses, Reuters reports.
The deal, valued at US$13 billion including debt, comes months after US President Barack Obama blocked the cross-border Keystone XL crude pipeline.
His decision was a victory for environmentalists and a blow to TransCanada after a seven-year battle for approval.
TransCanada will offer US$25.50 per share in cash for each Columbia Pipeline share, an 8.5 percent premium to the stock’s Thursday close.
Columbia Pipeline owns and operates about 24,000 kilometers of natural gas pipelines, connecting the US Gulf Coast to the Midwest, Mid-Atlantic and northeastern United States, home to some of the country’s most prolific shale gas plays.
That pipeline system will link up with TransCanada’s existing assets to create a 9,200 km network spanning the continent.
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