TransCanada’s Columbia acquisition cleared
TransCanada Corporation on Thursday informed that all conditions required to complete the acquisition of Columbia Pipeline Group have been satisfied.
Following the Columbia Pipeline Group shareholders vote in favor of the transaction, TransCanada noted that all necessary filings have been made for the transaction to take effect on July 1, 2016.
TransCanada will acquire Columbia for US$25.50 per common share in cash, resulting in an aggregate purchase price of approximately $13 billion including the assumption of approximately $2.8 billion of debt.
Columbia Pipeline Group is a Houston, Texas-based company that operates an approximate 24,000-kilometre network of interstate natural gas pipelines extending from New York to the Gulf of Mexico.
Russ Girling, TransCanada’s president and chief executive officer said, “this acquisition is a tremendous opportunity to obtain a competitively-positioned, growing network of regulated natural gas pipelines and storage assets in the heart of the Marcellus and Utica basins.”
This would enable TransCanada, that is already developing several pipeline projects to bring shale gas to proposed LNG terminals located on the Canadian Pacific coast to transport shale gas to LNG terminals for export to international markets.