Column: Trump 2.0 won’t reverse Biden’s critical minerals push
Donald Trump has described the Inflation Reduction Act (IRA) as a "green scam" and vowed to repeal it after he returns to the White House in January.
Pembina Pipeline Corporation (TSX:PPL) is set to acquire the former owner of the Trans Mountain pipeline in a deal pegged at $4.35 billion.
Calgary-based Pembina announced Wednesday (August 21) plans to buy Kinder Morgan Canada Ltd. (TSX:KML) and the U.S. portion of the Cochin pipeline, which runs 2,900 kilometres from Fort Saskatchewan to Chicago.
The American portion of the pipeline is owned by Kinder Morgan Inc., a separate entity from Kinder Morgan Canada.
The transaction values Kinder Morgan Canada at $2.3 billion, or $15.02 per share, while the American Cochin assets are valued at $2.05 billion for cash consideration.
“This acquisition is highly strategic for Pembina, providing enhanced integration with our existing franchise, entrance into exciting new businesses and clear visibility to creating long-term value for our shareholders,” said Pembina president and CEO Mick Dilger said in a statement.
The deal also includes Vancouver Wharves, a 51-hectare bulk marine terminal facility transferring more than 4 million tonnes of bulk cargo annually.
Pembina said it has already identified a number of expansion possibilities for Vancouver Wharves.
The pending sale comes about a year after Ottawa closed a deal to acquire the controversial Trans Mountain pipeline from Kinder Morgan Canada for $4.5 billion.
Since then, Kinder Morgan Canada has been dipping its toes on the market but found no takers until this deal.
(This article first appeared in Business in Vancouver)
