Canada’s Pembina Pipeline Corp. said on Tuesday it would buy rival Inter Pipeline Ltd. in an all-stock deal, valuing it at about $8.3 billion to create one of Canada’s top energy infrastructure companies.
The deal comes nearly four months after Inter Pipeline launched a strategic review as it fended off a $7.1 billion hostile takeover from investment firm Brookfield Infrastructure Partners.
Pembina’s offer of $19.45 per share represents a 10.8 per cent premium to Inter Pipeline’s Monday close.
The companies said they expect near-term cost savings due to the deal of up to $200 million annually.
More to come
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