The Committee on Foreign Investment in the US (CFIUS) has approved TransCanada’s $13bn acquisition of Columbia Pipeline Group.
The regulator approved the deal after investigating the company’s proposal, announced in March.
According to the company, the clearance satisfies one of the conditions required to complete the proposed acquisition.
The deal also requires approval from the US Federal Trade Commission (FTC) under the Hart-Scott-Rodino Anti-Trust Improvements Act (HSR Act), as well as Columbia’s stockholders.
On 6 May, the company refiled its HSR application, setting a new period of 30 days for review by the FTC.
Following the acquisition, TransCanada will be able to transport natural gas in North America to terminals for export worldwide.
TransCanada and Columbia expect to complete the deal later this year.
TransCanada operates a network of natural gas pipelines that extends over 66,400km, and taps into major gas supply basins in North America.
Columbia’s 24,000km network of interstate pipelines extends from New York to the Gulf of Mexico.
The company is currently developing projects worth $5.6bn.
Image: TransCanada Tower, the company’s head office in Calgary. Photo: courtesy of Qyd.
