TransCanada acquires Columbia Pipeline Group

By Sudarshan Sitaula

North America’s natural gas industry is becoming smaller and more vertically integrated. Today TransCanada Corporation revealed a $13 billion USD agreement deal to acquire Columbia Pipeline Group, majorly increasing the company’s reach in the United States.

Columbia Pipeline Group owns several key regional U.S. assets stretching throughout the Northeast, Midwest, Mid-Atlantic and down into the Gulf Coast. As part of the TransCanada portfolio, these assets will give their parent company several strategic advantages.

"The acquisition represents a rare opportunity to invest in an extensive, competitively-positioned, growing network of regulated natural gas pipeline and storage assets in the Marcellus and Utica shale gas regions," explains Russ Girling, TransCanada's president and chief executive officer, in announcing the merger. "The assets complement our existing North American footprint which together will create a 91,000-kilometre (57,000-mile) natural gas pipeline system connecting the most prolific supply basins to premium markets across the continent. At the same time, we will be well positioned to transport North America's abundant natural gas supply to liquefied natural gas terminals for export to international markets."

This transaction also comes with advantages for Columbia Pipeline Group and its shareholders, as the company also noted in the announcement.  

"This transaction delivers tremendous value to our shareholders and places Columbia Pipeline Group within a leading energy platform that can maximize the value of our strategic positioning and deep inventory of transformational growth projects," added Robert C. Skaggs, Jr., CPG's chairman and chief executive officer.

The acquisition is expected to close within the latter half of 2016, following shareholder approval. 

Share

Featured Articles

DEI done right: Brook Sims, COO, MAC Diversity Recruiters

Passionate about helping others find their voice, diversity leader and COO Brook Sims talks powerful leadership, diverse teams and being a change agent

Q&A: China’s ecommerce innovator Jeff Li, CEO of Shoplazza

Named in Fortune China’s 40 under 40 for 2022, former Baidu head Jeff Li is the entrepreneurial founder and CEO of ecommerce platform Shoplazza

How hybrid work is revolutionising the physical office

As hybrid work models roll out worldwide, the purpose of the office is changing with collaboration, connection and networking taking centre stage

Trailblazer: Shanique Bonelli-Moore, DEI chief at Clorox

Sustainability

Dean Forbes – the Forterro CEO aiming for the moon

Leadership & Strategy

Why becoming a B Corp is good for business

Sustainability