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TransCanada has agreed to pay $ 25.5 per Columbia’s share, what is 11% higher than the quotes at the close of trading on March 16. In addition, the Canadian company will take over an obligation to pay Columbia’s debt in the amount of $ 2.8 billion.
The acquisition of Columbia Pipeline Group will be record in TransCanada’s history, and will allow it to gain a foothold in the US market. As a result of the transaction, TransCanada will receive the pipeline network length of more than 24 thous. km, as well as underground gas storage facilities and gas processing.
TransCanada's share price on Thursday rose by 2.64%, Columbia’s - by 5.3%.
In November 2015, US President Barack Obama said that the US authorities refused to build Keystone XL oil pipeline from Canada. Speaking at the White House, Obama said he supports the project’s assessment made by the US Department of State, and considers that construction of Keystone XL pipeline "would not serve to US national interests." This decision was a victory for the country's environmental advocates and a blow to TransCanada, which had been seeking the project’s realization for seven years.
Keystone XL is Keystone’s project of the fourth stage. It was assumed that the pipeline, stretched from Canada's oil sands, will cover the territory of the US Midwest down to the Gulf Coast, where the largest US refineries are. It was assumed that the pipeline would be able to pump up to 830 th. barrels per day.
Keystone XL Project was officially proposed by TransCanada back in 2008, and has become a subject of heated debate in the United States from the beginning.
source: wsj.com
The acquisition of Columbia Pipeline Group will be record in TransCanada’s history, and will allow it to gain a foothold in the US market. As a result of the transaction, TransCanada will receive the pipeline network length of more than 24 thous. km, as well as underground gas storage facilities and gas processing.
TransCanada's share price on Thursday rose by 2.64%, Columbia’s - by 5.3%.
In November 2015, US President Barack Obama said that the US authorities refused to build Keystone XL oil pipeline from Canada. Speaking at the White House, Obama said he supports the project’s assessment made by the US Department of State, and considers that construction of Keystone XL pipeline "would not serve to US national interests." This decision was a victory for the country's environmental advocates and a blow to TransCanada, which had been seeking the project’s realization for seven years.
Keystone XL is Keystone’s project of the fourth stage. It was assumed that the pipeline, stretched from Canada's oil sands, will cover the territory of the US Midwest down to the Gulf Coast, where the largest US refineries are. It was assumed that the pipeline would be able to pump up to 830 th. barrels per day.
Keystone XL Project was officially proposed by TransCanada back in 2008, and has become a subject of heated debate in the United States from the beginning.
source: wsj.com
