Pembina terminates Inter Pipeline bid
Pembina Pipeline Corp. terminated its $8.5 billion agreement to acquire Inter Pipeline Ltd. after Brookfield Infrastructure Partners LP raised its hostile bid for the Canadian energy company.
Inter Pipeline said in a statement it will pay a $350 million termination fee to Pembina.
“Inter Pipeline’s Board of Directors is open to engaging with Brookfield in an effort to reach a mutually agreeable transaction in the best interests of shareholders,” Inter said.
The battle to control Inter follows years of failed attempts to build major projects like TC Energy Corp.’s Keystone XL and Energy East, potentially making existing lines more valuable. Inter owns pipeline infrastructure across Western Canada, connecting oil and natural gas producers with domestic and foreign customers.
The scramble for control over Inter marks the biggest corporate fight in the Canadian resource industry since Newmont Mining Corp. managed to fend off a hostile bid by Barrick Gold Corp. in 2019 by agreeing to a joint venture around the two companies’ projects in Nevada.