TransCanada to buy Columbia Pipeline Group for $10.2 billion
Thursday, March 17, 2016 3:43 p.m. CDT
(Reuters) – TransCanada Corp , the company behind the controversial Keystone XL oil pipeline project, said it had agreed to buy U.S. natural gas pipeline operator Columbia Pipeline Group Inc for $10.2 billion.
TransCanada will offer $25.50 per share in cash for each Columbia Pipeline share, an 8.5 percent premium to the stock’s Thursday close.
Including $2.8 billion in Columbia Pipeline’s debt, the deal is valued at $13 billion.
TransCanada said it would finance the deal by selling its U.S. Northeast merchant power assets and a minority interest in its Mexican natural gas pipeline business.
The company said it had also secured $10.3 billion of credit facilities.
Goldman, Sachs & Co and Lazard advised Columbia Pipeline, while Sullivan & Cromwell LLP and Bennett Jones LLP were its legal advisers.
Wells Fargo Securities LLC was TransCanada’s financial adviser and Mayer Brown LLP, Blake, Cassels & Graydon LLP and Osler, Hoskin & Harcourt LLP were its legal advisers.