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Pembina said on Monday it has reached a deal to buy Veresen for about C$9.7bn*, including debt, in a pact that will create one of the biggest Canadian energy infrastructure companies.
The deal will give the combined entity, which will have an enterprise value of about C$33bn, a deeper foothold in North America by merging Pembina’s assets in moving crude, natural gas liquids, condensates and heavy oil, with Veresen’s natural gas assets.
“The combined platform offers compelling customer service offering enhancements, as well as integration and investment potential, exceeding what we could do individually,” said Randy Findlay, Pembina’s board chair.
Calgary-based Pembina is offering to buy Veresen’s shares for either 0.4287 of a common share of Pembina or C$18.65 in cash. The pact values Veresen at a 21.8 per cent premium to its 20 day weighted average share price.
*This post has been amended to correct the deal amount.