Enbridge sweetens Spectra deal to $3.3 billion
Enbridge Inc, Canada’s largest pipeline operator, said it would buy its U.S. master limited partnership Spectra Energy Partners for a sweetened deal of $3.3 billion U.S.
According to Reuters, the pipeline companies are reorganizing their business structure after the U.S. Federal Energy Regulatory Commission in March stopped them from claiming an income tax allowance as part of the fees they charge shippers.
“Significant weakening of the US Master Limited Partnership capital markets has adversely affected the growth opportunities for MLPs, including Spectra,” Enbridge said in a statement.
Spectra Energy shares rose 5.7 per cent to $40 in premarket trading, while those of Enbridge were marginally down.