Pembina Pipeline has received approval from the Canadian Competition Bureau to acquire Kinder Morgan Canada (KML) in a deal worth C$4.35bn ($3.26bn).
The two companies involved in the deal noted that they have received a ‘no-action letter’ from the bureau, which clears the final regulatory barrier to complete the deal.
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As confirmed by the Canadian Competition Bureau, the Commissioner of Competition does not intend to challenge the proposed acquisition of KML’s outstanding common equity via a statutory arrangement under the Business Corporations Act (Alberta).
In August, Pembina signed agreements to buy Kinder Morgan Canada and the US portion of the Cochin pipeline system from Kinder Morgan (KMI).
The Cochin pipeline system is a 1,810-mile, 12in-diameter multi-product pipeline spanning across Fort Saskatchewan, Alberta, to Windsor, Ontario, Canada.
It connects Pembina’s Channahon, Bakken and Edmonton area assets and is linked to markets in Mont Belvieu, Conway and Edmonton.
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By GlobalDataThe pipeline has a capacity to produce approximately 110,000bpd on the Canadian portion and 95,000bpd on the US portion.
Expected to close next month, the deal is contingent on approval by KML shareholders at a special meeting scheduled on 10 December.
Under the transaction, Pembina will also acquire the Edmonton storage and terminal business, and the 125-acre bulk storage and export/import business Vancouver Wharves.
The strategic acquisition will enable Pembina to enhance its market diversification as a provider of integrated services to hydrocarbon producers in Western Canada.
In September 2018, Kinder Morgan intended to divest the Canadian section of the Cochin pipeline, which transports light hydrocarbon liquids between the US and Canada.
