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

Scott Dixon wins IndyCar pole at Watkins Glen

Sep 3, 2016

Scott Dixon won the IndyCar pole at Watkins Glen International on Saturday for the Grand Prix at...

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...

Astros keep up playoff push with victory over Cubs

Sep 11, 2016

Houston rookie Alex Bregman continued his hot streak with a homer that helped the Astros beat the...

New Miss America begins reign with Atlantic City...

Sep 12, 2016

The newly crowned Miss America has begun her reign with a romp in the Atlantic City surf, hours...

Veteran US diplomat John Buzbee dies at 50

Sep 15, 2016

John Buzbee, a veteran U.S. Foreign Service officer who served across the Middle East, died Thursday

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