Pipeline giant Enbridge Inc. just got larger in a $3.3 billion deal to acquire Spectra Energy Partners LP. It’s a deal that will affect an eastern Oklahoma natural gas line owned by Spectra Energy but operated by Enbridge.
Enbridge, Canada’s largest operator, made the proposal in May but it wasn’t accepted by unitholders until this week when Enbridge sweetened the pot by streamlining its corporate structure in the wake of U.S. tax changes.
Under the latest move, Spectra Investors will get 1.111 shares of Enbridge stock for every Spectra unit.
The deal will include the Ozark Gas Transmission which moves gas out of eastern Oklahoma and interconnects with Spectra Energy’s Texas Eastern Transmission system, the Mississippi River Transmission, Texas Gas and NGPL operated by Kinder Morgan.
The 330-mile gathering system accesses Arkoma Basin production in eastern Oklahoma that feeds into the Ozark Gas Transmission.
Enbridge is a major pipeline operator in the U.S. and its operations include those at the Cushing hub.
Here’s how Nasdaq reported the deal.