Pipeline operator Enbridge to buy Spectra Energy for $28B

FILE - In this 2011 file photo, workers make minor repairs on the pipeline hub run by Spectra Energy Corp. in Guilford, Pa. Canada's Enbridge is buying Houston-based Spectra Energy for about $28 billion, creating North America's largest energy infrastructure company, the companies announced Tuesday, Sept. 6, 2016. (Andrew Russell/Pittsburgh Tribune-Review via AP, File)

NEW YORK — Canada's Enbridge is buying Houston-based Spectra Energy for about $28 billion, creating North America's largest energy infrastructure company.

Both companies operate pipelines that deliver oil and natural gas.

Under the terms of the deal announced Tuesday, Spectra Energy shareholders will receive 0.984 a share of the combined company, or about $40.33 for each Spectra Energy share they own.

When the deal closes, which is expected to happen in the in the first quarter of 2017, Enbridge shareholders will own about 57 percent of the combined company and Spectra Energy shareholders will own about 43 percent.

The combined company will be called Enbridge Inc. and keep its current headquarters in Calgary, Canada.

Enbridge's U.S. shares rose $2.66, or 6.5 percent, to $43.65 in afternoon trading Tuesday. Shares of Spectra Energy Corp. rose $5.43, or 15 percent, to $41.58.

People also read these

Woods says he hopes to return next month

Sep 7, 2016

Out of golf for more than a year, Tiger Woods said Wednesday he hopes to play the first event of...

US firm Liberty Media buying Formula One auto...

Sep 7, 2016

Formula One has been bought by Liberty Media, a U.S. company that invests in entertainment and...

Austin's homer gives young Yankees 5th straight...

Sep 9, 2016

Rookie Tyler Austin hit a solo homer in the bottom of the ninth inning to give the New York Yankees...

Iverson, Shaq headline emotional Hall of Fame...

Sep 10, 2016

Allen Iverson and Shaquille O'Neal tried to let their play define their stature on the basketball...

Twitter to launch app on Apple TV, others to...

Sep 15, 2016

A new Twitter app is coming to Xbox One, Apple TV and Amazon Fire TV, where viewers will be able to...

Sign up now!

About Us

In The Headline sought to bring professionalism back into journalism, bringing you only the most exclusive and the most impactive news from all over the globe.

Contact us: sales[at]intheheadline.com