[Editor's note: This story was updated from a previous version posted at 12:15 p.m. CT Feb. 16.]
Enbridge Inc. (NYSE: ENB) and Spectra Energy Corp. (NYSE: SE) have won U.S. antitrust approval for a $28 billion merger that will create the largest North American energy infrastructure company.
The Federal Trade Commission (FTC) said on Feb. 16 that it would approve the deal.
The merger was announced in September 2016. Enbridge's pipelines mainly send Canadian crude from oil sands to refiners on the U.S. Gulf Coast, while Spectra's network ships natural gas to the U.S. East Coast.
Share prices of both Enbridge and Spectra were down slightly on Feb. 16. Enbridge was trading at $55.31, down 1.09%, while Spectra was at $41.55, down less than 1%.
The FTC's conditions were aimed at preventing a reduction of competition among natural gas pipeline providers in the Gulf of Mexico off Louisiana's coast.
Enbridge owns the Walker Ridge Pipeline while Spectra has an indirect stake in the competing Discovery Pipeline through its interest in DCP Midstream LP (NYSE: DCP). Once the deal is concluded, the merger would give Enbridge ownership interests in the two closest pipelines in parts of the Gulf of Mexico, the FTC said in a legal filing.
To resolve this, Enbridge agreed to establish firewalls that prevent it from accessing non-public information about the Discovery Pipeline, among other steps. Enbridge must also notify the FTC before increasing its DCP stake or acquiring other pipelines in the region.
The condition is to remain in place for 20 years, the FTC said in a statement.
The companies also announced that the FTC had approved the deal.
"The final regulatory requirement for closing is clearance under the Canadian Competition Act. The companies continue to expect the transaction to close in the first quarter of this year," both companies said in a statement.
RELATED: Enbridge Swallows Spectra To Create Midstream Monarch
Recommended Reading
Aethon Cuts Rigs but Wants More Western Haynesville Acreage
2024-03-31 - Private gas E&P Aethon Energy has drilled some screamers in its far western Haynesville Shale play—and the company wants to do more in the area.
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
Triangle Energy, JV Set to Drill in North Perth Basin
2024-04-18 - The Booth-1 prospect is planned to be the first well in the joint venture’s —Triangle Energy, Strike Energy and New Zealand Oil and Gas — upcoming drilling campaign.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.
Equinor Acquires Stake in Standard Lithium Smackover Projects
2024-05-08 - Equinor’s transaction, completed effective May 7, includes interests in Standard Lithium’s flagship South West Arkansas Project and East Texas properties.