Brookfield Infrastructure and its institutional partners have agreed to acquire Enbridge Inc.’s natural gas gathering and processing business in western Canada for CAD 4.31 billion (USD 3.3 billion).
Brookfield Infrastructure’s equity commitment in the deal is approximately CAD 500 million, representing a one-third interest.
Funding for the transaction will include proceeds from the sale of its 27% stake in Chliean transmission company Transelec for USD 1.3bn, which closed in March.
Advising Brookfield on the deal was Norton Rose Fulbright, Kirkland & Ellis, and Latham & Watkins (legal). Advising Enbridge on the deal was RBC Capital Markets (financial) and Torys (legal).
“This investment represents an exciting opportunity to invest in scale in one of North America’s leading gas gathering and processing businesses based in Western Canada”, said Brookfield Infrastructure CEO Sam Pollock in a company statement.
The Canadian midstream business includes 19 natural gas processing facilities with total operating processing capacity of 3.3 Bcf/d and 3,550
kilometers of gathering pipelines, with connectivity to major demand markets including the Pacific Northwest, Midwest and Western Canada.
“When combined with asset monetizations announced in May, the sale of our Canadian [midstream business] significantly advances our strategic priority of moving to a pure play regulated pipeline and utility business model”, said Enbridge CEO Al Monaco in a company statement.