Enbridge to buy Spectra Energy in all-stock deal worth C$37 billion
CALGARY — Enbridge is making a big bet on natural gas with the C$37-billion friendly takeover of Spectra Energy Corp., as it looks to grow while facing severe pushback on infrastructure projects.
The all-stock deal with Houston-based Spectra — the largest-ever foreign acquisition by a Canadian company — will create the biggest energy infrastructure company in North America, with a combined value of about $165 billion.
The deal would give Calgary-based Enbridge (TSX:ENB) far more exposure to the natural gas side of the business and extend the company’s reach throughout the continent, Enbridge CEO Al Monaco said Tuesday on a conference call with analysts.
“This transaction is transformational for both companies, and results in unmatched scale, diversity and financial flexibility with multiple platforms for organic growth,” said Monaco, who will stay on as president and CEO of the larger company.