TransCanada, the company still fighting to build the Keystone XL pipeline across the Midwest is buying Columbia Pipeline Group Inc. in a nearly $13 billion agreement. It also owns and operates the Keystone pipeline extending from Cushing, Oklahoma south to the Gulf Coast.
Columbia’s Board of Directors has unanimously approved the deal involving a purchase of $25.50 per share in cash to be paid by TransCanada. The buyer will also assume CPG’s debt.
“This transaction is truly transformational for TransCanada,” said Russ Girling, President and CEO of TransCanada. “CPG’s interstate pipeline and midstream assets sit directly on top of the fastest growing areas of the Marcellus and Utica Shale regions.”
The acquisition is to close in the second half of 2016 and requires the affirmative vote of holders of a majority of CPG’s outstanding shares. Once the deal is completed, TransCanada will own the general partner of Columbia Pipeline Partners LP.
Columbia Pipeline Group, Inc. operates nearly 15,000 miles of interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico.