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Houston-Based Spectra Energy To Be Sold To Canadian Pipeline Company Enbridge For $28 Billion

The merger will create the largest energy infrastructure company in North America.

A large diameter pipeline construction by Houston-based pipeline company Spectra Energy.
A large diameter pipeline construction by Houston-based pipeline company Spectra Energy.



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Houston-based pipeline company Spectra Energy will be sold to Enbridge Inc. for $28 billion in stock, making the Canadian company the largest energy infrastructure firm in North America.

In a conference call with investors, the two firms' CEOs called the deal a win-win. Greg Ebel, president and CEO of Spectra, will be chairman of the new Enbridge once the merger is complete, expectedly early next year.

"We've said on many occasions that we'd like to grow our liquids footprint and this transaction does this in a specific, accelerated way," Ebel said.

Spectra's main focus is on natural gas, while oil makes up 80 percent of Enbridge's pipelines. The new company will be more or less balanced between the two.

Together, they operate nearly 19,000 miles of pipelines moving oil and related liquids, and more than 100,000 miles of pipelines for natural gas.

"From that standpoint, by combining the two companies, I think we're going to be able to reach more customers and fuel the economy here in the U.S.," said Michael Barnes, communications manager with Enbridge, which already has its U.S. headquarters in Houston.

The new company will have a total value of $127 billion, more than any other North American pipeline company.

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