Pembina Pipeline has completed its merger with Canadian energy infrastructure company Veresen in a transaction valued at around $9.4bn ($7.51bn).
Following the business combination, the companies expect the new entity to become one of the largest energy infrastructure companies in Canada.
Under the arrangement, Pembina acquired all of the issued and outstanding common shares, as well as debt and preferred shares of Veresen.
Pembina Pipeline president and CEO Mick Dilger said: “With increased size and scale, the combined companies create a platform in which we can pursue expanded growth opportunities while continuing to support future dividend growth and value creation for our shareholders.
“Our customers will also benefit from the enhanced service offerings through the highly integrated asset base and the extended geographic reach.”
Recently, Pembina has placed $2.8bn ($2.2bn) of projects into service and is expected to commence operations on additional projects worth around $2bn ($1.5bn) by next year.
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By GlobalDataThe company’s Alberta ethane gathering system (AEGS) is currently being reviewed under the Canadian Competition Act by the Commissioner of Competition and his staff.
The ownership of AEGS is said to be complementary to the company’s natural gas liquids infrastructure.
Commissioning of the company’s Duvernay assets, comprising its 100 million cubic feet per day shallow cut gas plant, connecting pipelines and the associated field hub infrastructure, is in progress.
