Enbridge to consolidate $11.4bn of core assets in single unit

Canadian pipeline operator Enbridge has announced that it would look to house its core liquids and gas assets under one roof as part of the company’s wider corporate restructuring program.

The move will entail the company buy in the units that include Enbridge Energy Partners, Enbridge Energy Management and Spectra Energy Partners for a value of $11.4bn, or 272mn Enbridge common shares.

See also:

• Enbridge to sell $3.2bn of non-core assets to reduce debt

• Enbridge partners with Phillips 66 on pipeline project

• Enbridge Inc to acquire Spectra Energy Corp

“In December 2017, Enbridge outlined its 2018-2020 plan that emphasized several priorities, one of which was to assess the potential streamlining and simplification of its corporate structure,” Enbridge announced.

“Enbridge expects to discuss the merits of each of the separate proposals with the respective independent committees of each vehicle, upon formation of these committees.”

The key motivation behind the restructuring program is Enbridge’s desire to sell a range of its non-core assets in the aim of reducing its debt, valued at almost $61bn at the turn of the year.

The company’s acquisition of Spectra Energy last year has put the greatest financial strain on the company, resulting in the firm selling a variety of assets, including a significant stake in its renewables business last week.