Pipeline company closes big-ticket acquisition as it embarks on NAFTA challenge to Keystone XL rejection
CALGARY—Canadian pipeline company TransCanada Corp. has closed its US$13 billion blockbuster acquisition of Houston, Texas-based Columbia Pipeline Group Inc.
Announced earlier this year, the deal will add 24,000-kilometres of pipe to TransCanada’s already extensive North American natural gas network. Following the rejection of the company’s planned Keystone XL pipeline last year, the acquisition bolsters TransCanada’s footprint in the eastern U.S. and stretches its pipeline system to 91,000 kilometres.
With the closing of the deal, the Calgary-based company plans to work toward integrating Columbia’s business with its existing operations. It has retained a financial advisor it says will assist in carrying out a financial review of strategic alternatives for the company’s master limited partnership (MLP) holdings.
“The Company will carefully review its integrated business plan including future financial needs and expects to be in a position to communicate its determination regarding the future of TC PipeLines, LP and Columbia Pipeline Partners LP later in 2016,” the company said.
The deal’s completion also comes just days after TransCanada officially launched a $15 billion challenge to the Keystone XL ruling under the North American Free Trade Agreement.