Pembina Buying Veresen for $9.7 Billion
CBJ — Pembina Pipeline is to acquire Veresen in a friendly stock and cash deal valued at $9.7 billion, including debt, adding natural gas pipelines and processing infrastructure to its oil and natural gas liquids-heavy portfolio.
The combined company will have a strong position in the Western Canadian Sedimentary Basin, home to the world’s third largest crude reserves.
After the deal with Veresen, Pembina will own about 5.8 billion cubic feet per day of gas processing infrastructure across the region by 2018.
Pembina said Veresen shareholders could opt to get either 0.4287 of a Pembina share or $18.65 in cash. That is a 22.5% premium to Pembina’s last close.
The deal is expected to close late in the third quarter or early in the fourth quarter.