On 16 February, Spectra Energy Corp. (Spectra Energy) announced that the US Federal Trade Commission (FTC) has cleared the previously announced proposed combination of the company with Enbridge Inc. (Enbridge).
Since the FTC voted to accept a proposed consent decree as part of the clearance, Enbridge and Spectra Energy have agreed (following the closing of their proposed combination) to enact firewalls to govern the flow of certain information to Enbridge about the Discovery offshore Gulf of Mexico natural gas pipeline system.
Spectra Energy holds an ownership interest in Discovery through its indirect ownership interest in DCP Midstream, LP, which holds a 40% ownership interest in the Discovery system. Certain other steps will be taken to limit Enbridge’s potential influence over actions related to Discovery. Also through an affiliate, Enbridge has offshore natural gas gathering operations in the Gulf of Mexico.
With the clearance from the FTC, the proposed combination of Enbridge and Spectra Energy has just one remaining regulatory clearance to secure in order to close the transaction: clearance under the Canadian Competition Act.
The companies still expect the transaction to close in the 1Q17.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/20022017/enbridge-and-spectra-energy-obtain-ftc-clearance-for-merger/