TransCanada Corp. has announced that all conditions required to complete the acquisition of Columbia Pipeline Group Inc. under the terms of the merger agreement have been satisfied. All necessary filings have been made for the transaction to take effect on 1 July 2016. TransCanada will acquire Columbia for US$25.50/common share in cash, resulting in an aggregate purchase price of approximately US$13 billion including the assumption of approximately US$2.8 billion of debt.
"This acquisition is a tremendous opportunity to obtain a competitively-positioned, growing network of regulated natural gas pipelines and storage assets in the heart of the Marcellus and Utica basins," commented Russ Girling, TransCanada's president and chief executive officer. "With this transaction, we have further diversified our suite of premium assets, added to our near-term growth portfolio and created one of North America's largest regulated natural gas transmission and storage businesses, linking the continent's most prolific natural gas supply basins to its most attractive markets."
The Marcellus and Utica basins have the lowest development and production costs along with the highest growth prospects of any large basin on the continent. Upon completion of the acquisition, TransCanada will remain focused on advancing a combined US$25 billion of secured, near-term growth projects. This growth supports and may augment TransCanada's eight to 10% expected annual dividend growth rate through 2020.
"As we move forward, our focus on safety, integrity, reliability and accountability remains the same so we can maintain strong relationships with the communities where we operate and maximise value for our shareholders," added Girling. "Together we are stronger, better able to compete, in a unique position to grow and to continue building critical energy infrastructure that North Americans need."
Edited from press release by Angharad Lock
Read the article online at: https://www.worldpipelines.com/equipment-and-safety/04072016/transcanada-completes-columbia-pipeline-group-acquisition-276/