The acquisition comes in the wake of the U.S. Federal Energy Regulatory Commission blocking income tax claims of fees charged to shoppers as part of their fees. After this move, many pipeline companies have reorganized their business structure.
Canada’s Enbridge Inc has disclosed it would be acquiring Spectra Energy Partners with which it has a master limited partnership for $3.3 billion.
Following the blocking of claims by the U.S. Federal Energy Regulatory Commission on income tax allowance as part of the fees they charge shippers, pipeline companies have reorganized their business structure.
“Significant weakening of the US Master Limited Partnership capital markets has adversely affected the growth opportunities for MLPs, including Spectra,” said Enbridge in a statement.
Enbridge raised its offer to 1.111 of its common shares for each Spectra unit, compared with its previous offer of 1.0123 of its shares.
With the news reaching the market, Spectra Energy’s shares rose by 5.7% to $40 in pre-market trading.